Kuala Lumpur, Malaysia – Malaysian aviation and travel services group and parent company of AirAsia, Capital A, has recently announced that it has entered into a non-binding letter of offer with AirAsia X Berhad (AAX) for the proposed disposal of its aviation businesses, which makes up AirAsia Berhad (AirAsia Malaysia) and AirAsia Aviation Group Limited (AirAsia subsidiaries in Thailand, Indonesia, Philippines, and Cambodia).

The strategic move is aimed at streamlining the group and facilitating a business-centric valuation of the separate entities, potentially unlocking greater value to shareholders, and aiming to create a pure play entity that aligns with market preferences. 

In a press release, AirAsia stated that it is confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognised for their intrinsic value and potential. 

Capital A’s companies, including Teleport (logistics), Capital A Aviation Services (MRO and Inflight), and MOVE digital, will also be raising capital, offering shareholders an uplift on their Capital A shares, complemented by shares in the enlarged aviation group under proposed shares distribution. 

Following the sale of the aviation business, Capital A shareholders will become shareholders of the two listed companies.

With the completion of the aviation disposal, Capital A is committed to presenting a comprehensive PN17 regularisation plan by June 2024. Furthermore, Capital A is dedicated to transparent communication and will provide all stakeholders with detailed information throughout this process.

Regarding this, Tony Fernandes, CEO of Capital A, said, “All businesses across Capital A have been thriving and we are ready to grow. We need to raise funds for business expansion, but gaining access to capital has been challenging due to Capital A’s Practice Note 17 (PN17) status. We have been engaging committed investors who have expressed a strong preference for a pure aviation play.”

Talking about the disposal, Fernandes mentioned, “To address this and to ensure a robust financial injection, we are strategically pursuing the sale of the aviation business to AAX to create an aviation pure play, consolidating both long and short-haul airlines under the AirAsia brand, subject to the negotiation of a definitive share sale and purchase agreement and its completion.”

“Following the disposal, the aviation business is poised to benefit from focused management and a well-defined strategic direction, which will boost the aviation business’s capacity to seize growth opportunities, expand market share, and ultimately achieve enhanced profitability,” he added.

Kuala Lumpur, Malaysia – AirAsia X, the long-haul budget airline under the airasia airline fleet, has announced that Tony Fernandes is stepping down from his role as acting group CEO role of the airline. According to AirAsia X, Fernandes will focus on his much-larger role as the group CEO of Capital A.

“I am confident that AAX will come back stronger providing a great value mid-range travel, led by the senior leadership teams in Malaysia and Thailand. I’m now going to focus on delivering significant value to shareholders of Capital A, including the AirAsia Aviation Group, aviation services, logistics, travel, fintech and the e-commerce lifestyle platform,” Fernandes said.

Fernandes’ resignation from the AirAsia X board comes months after Rafidah Aziz stepped down from her role as chairman of AirAsia X.

“I went in with a clear mandate to restart AirAsia X and bring it back to life from hibernation. I am happy that this has been accomplished with a very edifying plan for 20 aircraft for the AAX Group— 13 aircraft for AAX and seven for Thai AAX,” Fernandes added.

AirAsia X has also announced the appointment of Tunku Dato’ Mahmood Fawzy will be appointed as the independent non-executive director of Thai AirAsia X (TAAX).

“I am thrilled to join the TAAX board of directors as the Group embarks on our new phase of growth as a predominantly mid-range airline. Our strategy is to focus on flying our most popular and profitable medium haul routes first, which have proven to be successful in the past including leveraging cargo operations in key markets,” Fawzy said.

Sepang, Malaysia – AirAsia X, the medium to long-haul affiliate airline of AirAsia Aviation Group, has announced the resignation of Rafidah Aziz from her leadership position as chairman of AirAsia X.

Aziz was appointed as an independent non-executive director and chairman of the board on 3 March 2011, and was re-designated as a senior independent non-executive chairman upon listing of the company on 10 July 2013. 

Speaking on her resignation, she said, “I will be 79 this year and will have served the term allowed as an Independent Director. I would then need to comply with the change in status from Independent to non independent Board member and the other ensuing requirements. I have therefore decided to resign from my position as chairman of AAX and this will take effect from 1 July.” 

She added, “I feel AAX should appoint new people to the board to take the company forward especially after the restructuring exercise. It has been a very good experience for me, having developed so many friendships with the Allstars at all levels, which I will always cherish.”

Meanwhile, Tony Fernandes, CEO of Capital A and founder of AAX commented, “Tan Sri Rafidah has always been much more than a Chairman. As an incredible trailblazer in so many ways, she was a rock and my backbone during the ups and downs of AirAsia and importantly, a friend and mentor for my own personal life. She was always there to give support and did not hold back in sharing her sharp insights.” 

He added, “While she is retiring, Rafidah will always be very much a part of the AirAsia family and her leadership will continue to inspire all of us. I’m sure we will continue to seek wisdom and guidance from her as we head into our next chapter.”