Malaysia’s Capital A to merge AirAsia brands, as CEO Tony Fernandes set to retire within 5 years

Malaysia conglomerate Capital A plans to sell its budget airline AirAsia to its medium-haul affiliate AirAsia X in a bid to streamline operations

CEO Tony Fernandes also told a press briefing on Monday that he intends to retire within five years

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Capital A CEO Tony Fernandes says that the Malaysian conglomerate intends to sell its budget carrier business to medium- to long-haul affiliate AirAsia X in a major consolidation of the country’s airline industry. Photo: AFP

Published: 6:00am, 9 Jan 2024Updated: 8:27am, 9 Jan 2024

Malaysia’s Capital A Berhad said on Monday it intends to sell its aviation business to long-haul unit AirAsia X Bhd, with a goal of consolidating both its long and short-haul operations under a single AirAsia brand.

The proposed deal, which is subject to a final agreement being signed and to approvals from shareholders and courts, involves the sale of AirAsia Berhad and AirAsia Aviation Group Ltd, which includes AirAsia units in Thailand, Indonesia, Philippines, and Cambodia, Group Chief Executive Tony Fernandes told reporters without disclosing any deal value.

Full details of the deal would be announced “in the next two weeks”, Fernandes told reporters at AirAsia’s 2024 outlook briefing.

“Eventually AirAsia X and AirAsia will be merged into one airline … my dream is for it to be one Asean airline,” Fernandes said, referring to the 10-member Association of Southeast Asian Nations.

“We are going to merge the two airlines and double passenger traffic to 200 million [per year] from about 80 to 90 million currently,” Fernandes said.

AirAsia was founded in 2001 with two aircraft and has since become one of Asia’s largest budget airline operator serving markets including Southeast Asia and China. Its fleet consists of 166 A320 and A321 planes, while AirAsia X has 17 A330s.

I have been doing it for 22 years. It is the right time to retire. Leadership is about knowing when to step aside

Tony Fernandes, AirAsia CEO

The merged airline would start flying new routes to India, Africa, Kazakhstan, and North and South America in 2025, said Fernandes, who also announced he would retire from his position at Capital A in 2028.

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