MALAYSIA's airline group Capital A Berhad, operator of budget carrier AirAsia Philippines, is transferring its aviation business to AirAsia X Berhad (X), reports Manila's BusinessWorld.
Capital A Berhad said it had entered into a non-binding agreement with its unit AirAsia X for the sale of its aviation businesses - AirAsia Berhad and AirAsia Aviation Group.
'We will combine Malaysia AirAsia and AirAsia Aviation Group, which [includes] Indonesia, the Philippines, Thailand and Cambodia,' said Capital A CEO Tony Fernandes.
The move 'positions AirAsia X to become the overarching regional aviation provider for all short and medium-haul routes under the AirAsia brand name,' Capital A Berhad said in a press statement.
The definitive sale and purchase agreement are still being finalised, Mr Fernandes said, adding that the transaction is expected to be signed in two weeks.
Restructuring would also allow Capital A to focus on its other companies, which include logistics aviation services and a digital services platform, he said.
Said AirAsia X chairman Dato' Fam Lee Ee: 'These strategic acquisitions serve as pivotal milestones in X's post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning.'
Last year, AirAsia X exited its PN17 status, which is a classification issued by the Malaysian bourse to companies in financial distress.
Mr Fernandes said the group needs to raise capital as it intends to add more aircraft in Indonesia and the Philippines.
'Our growth is going to be very heavily driven by the Philippines and Indonesia on top of Malaysia and Thailand, which have a lot of growth,' he said.
The group is looking to launch flights to the US by the end of this year, citing that it sees potential in the Philippines due to the growing demand in tourism.
The Philippines recorded 5.45 million international visitors in 2023, surpassing its 4.8 million target, the Tourism department said. This year, the agency is targeting 7.7 million visitors.
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Capital A Berhad said it had entered into a non-binding agreement with its unit AirAsia X for the sale of its aviation businesses - AirAsia Berhad and AirAsia Aviation Group.
'We will combine Malaysia AirAsia and AirAsia Aviation Group, which [includes] Indonesia, the Philippines, Thailand and Cambodia,' said Capital A CEO Tony Fernandes.
The move 'positions AirAsia X to become the overarching regional aviation provider for all short and medium-haul routes under the AirAsia brand name,' Capital A Berhad said in a press statement.
The definitive sale and purchase agreement are still being finalised, Mr Fernandes said, adding that the transaction is expected to be signed in two weeks.
Restructuring would also allow Capital A to focus on its other companies, which include logistics aviation services and a digital services platform, he said.
Said AirAsia X chairman Dato' Fam Lee Ee: 'These strategic acquisitions serve as pivotal milestones in X's post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning.'
Last year, AirAsia X exited its PN17 status, which is a classification issued by the Malaysian bourse to companies in financial distress.
Mr Fernandes said the group needs to raise capital as it intends to add more aircraft in Indonesia and the Philippines.
'Our growth is going to be very heavily driven by the Philippines and Indonesia on top of Malaysia and Thailand, which have a lot of growth,' he said.
The group is looking to launch flights to the US by the end of this year, citing that it sees potential in the Philippines due to the growing demand in tourism.
The Philippines recorded 5.45 million international visitors in 2023, surpassing its 4.8 million target, the Tourism department said. This year, the agency is targeting 7.7 million visitors.
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