DALLAS — In a recent shareholders' meeting, AirAsia X (D7) approved the acquisition of budget carrier AirAsia (AK), consolidating Malaysia-based airlines under one group by the end of the year.
Nearly 99% of shareholders backed the RM6.8 billion (US$1.6 billion) deal, which involves acquiring Capital A's aviation businesses under AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB).
Pending final court and regulatory approval, the combined aviation group will operate AirAsia’s short- and medium-haul routes alongside AirAsia X’s long-haul routes, further strengthening Kuala Lumpur International Airport (KLIA) as a global hub.
AirAsia X and Capital A faced significant financial challenges during the pandemic, which resulted in Capital A’s classification as a PN17 (financially distressed) firm on the Malaysian stock exchange.
AirAsia X exited PN17 status last year. Tony Fernandes, CEO of Capital A, said that the disposal of AAB and AAAGL, including those in Thailand, Indonesia, the Philippines, and Cambodia, will support its restructuring and exit from PN17 status.
Comments from AirAsia X
“This acquisition will give us access to over 200 existing aircraft and 361 future aircraft order books from Capital A’s aviation portfolio, combining both narrow-body and wide-body aircraft into a unified group, enabling us to expand our reach across long, medium, and short-haul segments. With this enhanced fleet, we can operate more efficiently, offer better service to our guests, and strengthen our competitive position in key markets.”, said Dato’ Fam Lee Ee, Chairman of AirAsia X.
“We will prioritise sustainable expansion, operational excellence, and innovation, ensuring that AirAsia continues to lead in the low-cost market. With over 23 years of experience in building market-leading airlines and multi-hub operations, we are not only better positioned to seize market opportunities but also to strengthen our competitive edge and build a future-ready airline that places our customers at the heart of everything we do.”, added Benyamin Ismail, CEO of AirAsia X.
Recent route launches to Almaty and Nairobi by D7 signal the airline's further expansion plans into Asia and Africa. The consolidation will significantly enhance network capacity and strengthen connectivity, offering guests various destinations and travel options for leisure and business.
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December 2024
