Capital A has officially completed the disposal of its aviation businesses to AirAsia X Berhad (AAX), marking the end of a six-year restructuring journey that began after the COVID-19 pandemic disrupted global aviation. The group confirmed the completion in a Bursa Malaysia filing dated 16 January, positioning both companies for their next phase as separate but more focused entities.
The transaction involved the transfer of AirAsia Berhad and AirAsia Aviation Group Limited to AAX. As part of the deal, AAX issued 2.31 billion new shares to Capital A and its entitled shareholders via a dividend-in-specie, while also assuming RM3.8 billion in liabilities previously owed by Capital A to AirAsia Berhad. At the same time, AAX issued an additional 606.06 million placement shares to investors. Both the consideration and placement shares are scheduled to be listed on Bursa Malaysia’s Main Market on 19 January 2026.
With the transaction now completed, all AirAsia-branded airlines operate under a single airline platform, referred to as the AirAsia Group. Capital A, meanwhile, will fully pivot towards expanding its non-aviation businesses.
Capital A CEO Tony Fernandes described the completion as one of the most emotional moments of his career, calling it the close of the group’s most challenging chapter. He said the restructuring process was driven by resilience and regulatory discipline, adding that AirAsia’s consolidation under one airline group would enable better connectivity and value for passengers, while Capital A sharpens its focus on long-term sustainability and growth.
Meanwhile, Group CFO Teh Mun Hui echoed the sentiment, highlighting that the transaction was structured to protect cash, right-size the balance sheet, and create two financially cleaner entities. She added that Capital A will move quickly to pursue the uplift of its PN17 classification following the share listing.
What Does This All Mean?
At a structural level, this move separates Capital A’s aviation and non-aviation operations into two distinct, focused entities. AirAsia X now becomes the single listed vehicle for all AirAsia airline operations, simplifying the group’s airline structure and consolidating its short- and long-haul businesses under one platform.
For Capital A, exiting aviation allows it to concentrate on its ecosystem businesses, including ADE, Teleport, AirAsia MOVE, AirAsia Next, and Santan. The group has repeatedly positioned these units as growth drivers beyond airlines, with an emphasis on logistics, digital services, and ancillary revenue streams. The transaction also removes RM3.8 billion in liabilities from Capital A’s balance sheet, a key step as it works towards lifting its PN17 status.
Name Change?
This disposal completion comes shortly after earlier commentary about the future AirAsia X identity. On 13 January, Tony Fernandes posted on LinkedIn that AirAsia X would be renamed AirAsia effective 19 January, as part of the consolidation of all airline operations under a single AirAsia airline group.
However, in an update published on 15 January, AirAsia X clarified in a bourse filing that the company is only exploring a potential name change to reflect the consolidated structure, and that no definitive decision has been made. The filing added that any renaming remains subject to internal board approvals, regulatory approvals, and other formalities, with no application submitted to the authorities so far.
Responding to our query, a Capital A representative said that a name change in line with Fernandes’ post is planned but not yet finalised. While no specific timeline was provided, a further announcement is likely in the near term.
(Source: AirAsia [official website])
