AirAsia X will change its company name to AirAsia, effective January 19.
AirAsia X will conduct a private placement of 1 billion Malaysian ringgit. The issue price will be 1.65 Malaysian ringgit per share. In addition, shares of AirAsia X will be allotted to shareholders of Capital A, which is selling its aviation business.
On January 19, Capital A will submit an application to the Malaysian stock exchange (Bursa Malaysia) for an upgrade from PN17 status. The final hearing is scheduled to be held on January 21.
Group Chief Executive Officer Tony Fernandes commented, “AirAsia will become a single airline group and a single brand. By integrating AirAsia X and AirAsia, we will build an airline group with global ambitions. Using a very exciting hub to be established in Bahrain as our base, we will create a low-cost version modeled on Emirates and Qatar Airways, and cover all continents.”
The integration of the group’s airlines is expected to improve both operational and financial efficiency. Aircraft orders are in the final stages of adjustment, and through the business restructuring, the group aims to strengthen its balance sheet, reduce interest costs by refinancing existing debt, and improve profit margins through superior aircraft. The target is to achieve an EBITAR margin of 30%.
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