Malaysian long-haul budget airline AirAsia X (AAX) has announced the signing of a non-binding letter of acceptance with Capital A for the planned acquisitions of AirAsia Berhad and AirAsia Aviation Group Limited.
The Capital A divestment will allow for the merging of AirAsia X and AirAsia, bringing all short and medium-haul routes under the AirAsia brand name.
According to AirAsia, the deal is set to bring “unparalleled advantages”. This will include a strengthened market position, increased operational efficiency and enhanced financial performance.
The Malaysian airline hopes the acquisition will deliver market confidence and drive cost savings.
Dato’ Fam Lee Ee, AirAsia X Chairman, further emphasised how the acquisition aligns with the company’s strategy.
Lee Ee said: “These strategic acquisitions are pivotal milestones in AAX’s post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning.
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“The consolidation under the AirAsia brand as a one-listed entity reflects our commitment to capitalise on our regained strength and market confidence to deliver a unified and unparalleled travel experience for our guests and significant value for our shareholders”.
The agreement follows the “upliftment” of AirAsia X’s PN17 in November 2023. According to the airline, it earned an RM5.6m ($1.2m) net profit in Q3 2023 and got elevated from its PN17 classification, marking an important milestone in the airline’s journey.
“Leveraging the strengths of all airlines under the AirAsia brand, we are poised to create a pure-play entity that propels us forward. The synergy created through these strategic acquisitions represents more than just a financial consolidation; it symbolises our role as a trailblazer in shaping the future of the aviation industry”. added Lee Ee.
The financial details have not been disclosed but are set to be “announced in due course”.