Capital A, formerly known as AirAsia Group, is restructuring its operations and merging its low-cost airline AirAsia with long-haul carrier AirAsia X. The two will be housed under a new division, called AirAsia Aviation. AirAsia Aviation will be run by Bo Lingam, who is currently president, airlines and group CEO of AirAsia Aviation Group.
Meanwhile, its digital business and logistics will be handled by Tony Fernandes, who stepped down from acting CEO of AirAsia X earlier this month. On his departure, Fernandes had earlier said that he had other commitments and ensuring a smooth transition of leadership
With the new restructuring, Fernandes said, “We were at the sharp end of COVID-19, as were many airlines around the world, but we are coming out of it stronger than before – our airlines and network are fast returning to pre-pandemic levels, and our digital businesses are performing better than many had expected.”
He explained that the new scheme will have a clear separation between Capital A’s three main portfolios of businesses, namely the aviation group, the digital businesses and the logistics plus aviation services. He added that while the PN17 status remains an “accounting issue and does not accurately reflect the business viability and prospects of Capital A”. PN17 is a practice note issued by Bursa Malaysia in relation to listed issuers that are in financial distress.
Fernandez shared that Capital A will be rebranded as an aviation services and digital group, post the disposal and distribution exercises. "We envision a separate spin-off listing in the future for the aviation services businesses of Capital A once the PN17 status is resolved," he said.
“We are grateful for the tremendous support and understanding so far from our lessors, partners, customers, staff and other stakeholders, who enabled us to survive this far and turn this crisis into an opportunity,” he said. AirAsia X CEO Benyamin Ismail said said that the the strategy is “not only expected to strengthen” the balance sheet and cash flows “but create value for the company as well as shareholders in the longer term”.
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