KUALA LUMPUR, 23 September 2024 – Capital A is pleased to announce that the Extraordinary General Meeting (EGM) will be held on 14 October 2024, where the proposed disposal of Capital A's aviation business to AirAsia X (AAX) will be tabled for shareholders’ approval. This key step comes as part of Capital A’s strategic move to streamline and drive long-term growth across its aviation and non-aviation businesses.

Tony Fernandes, CEO of Capital A said, "This marks a transformative, game-changing chapter for Capital A. The disposal of our aviation business to AAX will allow Capital A to focus on the four core pillars that will define the future of our Group: Aviation services, MOVE Digital, Teleport (Logistics), and the Brand AA company.” 

Capital A Aviation Services (CAPAS)
CAPAS is set to lead the way in aviation MRO (Maintenance, Repair, and Overhaul) and in-flight catering. Asia Digital Engineering (ADE) will deliver best-in-class MRO services that include line maintenance, base maintenance, workshops, and technical advisory, providing cutting-edge solutions for AirAsia and third-party airlines. Additionally, CAPAS’s in-flight catering arm, Santan will continue to serve AirAsia flights with high-quality, ready-to-eat meals while expanding to other modes of transport and retail outlets under the “Santan Café” brand. This will cement Santan’s position in providing innovative culinary experiences to a wider customer base.

MOVE Digital
MOVE Digital leads innovation in travel and fintech. AirAsia MOVE, the online travel agency arm, provides seamless booking services for flights, hotels, and airport transfers, delivering an all-in-one digital experience for travellers across the region. Complementing the digital travel ecosystem is BigPay, Capital A’s fintech platform, which offers inclusive financial solutions including payment services, remittance, lending, and financial management. Together, the two digital entities form a powerful synergy to ensure a seamless experience for users and enhance their position in the digital space. Additionally, AirAsia MOVE’s loyalty and rewards platform which has immense potential is poised for significant growth and is on track to becoming an independent company in the future.

Teleport
Capital A’s logistics arm, Teleport has become the leading air cargo provider in Asean in a short period of time providing innovative and flexible logistics solutions. Teleport Cargo offers airport-to-airport freight using AirAsia’s belly space and three dedicated freighters and more to come, while Teleport Solutions offers a customisable first-to-last-mile cross-border delivery service. Additionally, Teleport Next Day handles express, door-to-door cross-border parcel deliveries. Teleport’s unique value proposition is further strengthened by its partnerships with major global airlines and freight forwarders, which enable Teleport to manage mid-mile and last-mile logistics for e-commerce and retail.

Brand AA
The Brand AA entity focuses on developing, licensing, and managing the globally recognised AirAsia brand. It oversees intellectual property rights and acts as the exclusive licensor, supporting business expansion through strategic partnerships across various sectors. Leveraging its strong global reputation, the AirAsia brand offers valuable licensing opportunities and fosters collaborations that drive growth beyond aviation. Its asset-light business model, along with strategic expansion into the general retail landscape through partnerships, acquisitions, and merchandising, will fuel continued growth.

Fernandes added, “We believe this aligns with Capital A’s broader strategy to diversify its business portfolio and position itself as a technology-driven company. Our non-aviation businesses will emerge from the shadows and receive the recognition they deserve, while the aviation business will transform into a new AirAsia Group, with synergies between short-haul and long-haul operations enhancing efficiency, profitability, and returns for shareholders."

The financial effects of the proposed disposal per the pro forma financial statement as of 31 December 2023 as included in the Circular to Shareholders dated 20 September, shows that Capital A shareholders' equity will turn to positive of RM649 million from a negative of RM8.8 billion. We look forward to gaining the support of our shareholders at the EGM and support from RCUIDS holders at the upcoming meeting as we embark on this transformative journey for Capital A’s next chapter of growth.”

The meeting for the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) will be held on 14 October. Upon securing shareholders' approval at the EGM, the company will seek a court order to proceed with the proposed distribution of consideration shares to shareholders through a planned reduction and repayment of the company’s issued share capital. These critical steps will enable Capital A to achieve a clean balance sheet and focus on soon submitting its regularisation plan, with the aim of exiting Practice Note 17 (PN17) status.

The circular detailing the proposed disposal, business outlook, voting procedures, and the EGM agenda is available to shareholders on Capital A’s website.

***ENDS***