AirAsia X is aiming to complete the acquisition of sister company AirAsia Aviation by December, as both companies eye a “new era” following its completion.
AirAsia X, the medium-haul, low-cost operator, submitted to the Malaysian stock exchange its draft circular detailing its proposed acquisition plan.
Similarly, Malaysia-headquartered Capital A, which is the parent of AirAsia Aviation, has also submitted to Bursa Malaysia its plans to dispose of its shareholding in its airline business.
An extraordinary general meeting must be convened within 21 days of the exchange’s approval, where shareholders will vote on whether or not to green-light the acquisition.
The deal, which was first announced in January and confirmed in April, is valued at around MYR6.8 billion ($1.49 billion).
The new acquisition timeline is a slight delay from earlier-disclosed plans, which state that the acquisition will be completed by September. To speed up the process, AirAsia X says it has nixed its own reorganisation plans, and will undertake the acquisition directly.
It is likely the newly formed AirAsia Group will retain both brands for now, though there are plans to eventually merge into a single AirAsia brand.
Capital A says the move to divest its aviation business is part of its “strategic plan to streamline its operations and concentrate on specialised areas supplementary to the aviation business”.
Capital A chief executive Tony Fernandes, who will be advisor to the new airline group, says: “The ongoing transformation of the new aviation group is a testament to Capital A’s resilience and strategic foresight.”
AirAsia X chairman Fam Lee Ee adds: “We anticipate that an enlarged aviation group will attract strong interest from investors, given our enhanced market position and the growth potential the combined aircraft orderbook presents for our expansion ambitions. This move aligns with our long-term vision of becoming a leading player in the global aviation industry.”
Seperately, AirAsia Aviation will add five more Airbus A321neos – likely on third-party lease – for the rest of the year, as aircraft deliveries resume.
The airline group confirmed it had taken delivery of four new A321neos from Airbus since early July, which will be placed with its Malaysia and Thailand units.
The new A321neos will offer “greater flexibility on short to medium-haul routes such as Kuching, Tawau, Shenzhen, Kunming, Phuket, Krabi, Chiang Mai, and more”, says AirAsia.
The airline group targets a fleet of over 300 aircraft across units in Southeast Asia within the next five years, higher than its pre-pandemic fleet size.
