AirAsia X has announced its strategic acquisition of the aviation business of Capital A (formerly known as AirAsia Group).
A non-binding letter of intent for the acquisition has been signed with Capital A, which will enable AirAsia X to operate short to medium-haul routes under the AirAsia brand.
Capital A oversees several airlines that operate short-haul routes based in Malaysia, Thailand, Indonesia, and the Philippines. The aviation business revenue for the third quarter of 2023 stood at 3.9 billion Ringgit.
The acquisition is expected to strengthen market position, improve operational efficiency, and ultimately lead to cost reductions and an improvement in financial performance. Detailed information will be announced conditional upon the final agreement and completion.
Dato’ Fam Lee Ee, Chairman of AirAsia X, commented, “These strategic acquisitions are an extremely important milestone in the rejuvenation strategy of AirAsia X post its Practice Note 17 (PN17) status, enhancing our financial stability and reinforcing our market positioning. Integrating as a single listed entity under the AirAsia brand reflects our commitment to leveraging our recovered strength and market confidence to provide a unified service.”
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