AirAsia X to be renamed and consolidated under single AirAsia brand

AirAsia X, the long-haul subsidiary of AirAsia, is set to be renamed and consolidated under the AirAsia brand, marking a major step in the group’s long-anticipated restructuring and a return to a single airline identity with global ambitions.

The move was confirmed by AirAsia founder Tony Fernandes (pictured below) in a LinkedIn post, where he described the development as “an exciting day” for the group, noting that AirAsia X will soon be renamed AirAsia and listed as a new quoted stock on 19 January. On the same day, Capital A will apply to be uplifted from PN17 status, with a final court hearing scheduled for 21 January.

“AirAsia will be one airline group and one brand,” Fernandes said, adding that the consolidation of AirAsia X and AirAsia will create a single airline group with global ambitions.

The rebranding and consolidation come as AirAsia X announced it has secured full subscription for its RM1 billion private placement, priced at RM1.65 per share. The placement, which attracted a broad mix of institutional and private investors, will also be completed on 19 January, with new shares to be listed on Bursa Malaysia’s Main Market on the same day.

In a separate statement, AirAsia X chairman Fam Lee Ee said the strong investor response reflects confidence in the airline’s restructuring and growth strategy, as it works towards forming an enlarged AirAsia Group. He added that the capital injection will support the group’s next phase of growth as it integrates long-haul and short-haul operations into a single aviation platform.

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According to Fernandes, the consolidation is designed to simplify the brand architecture while unlocking operational and financial efficiencies. These include improved fleet utilisation, integrated network planning, and the ability to leverage Capital A’s broader ecosystem to drive down costs and increase ancillary revenue.

Fernandes also revealed plans to develop a strategic hub in Bahrain, positioning AirAsia as a low-cost alternative to Middle Eastern carriers such as Emirates and Qatar Airways, while applying strict cost discipline. “We will build a low-cost version of Emirates and Qatar and cover all continents,” he said.

Alongside the structural changes, AirAsia is finalising new aircraft orders aimed at reducing costs and improving margins through better fleet planning. Fernandes said his target is to achieve earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of 30%, supported by what he described as the “lowest cost in the world” and a significant contribution from ancillary income.

The broader Capital A ecosystem is expected to play a central role in supporting the airline’s ambitions. Fernandes pointed to AirAsia MOVE as a key driver of ancillary growth and customer acquisition, while AirAsia NEXT is being positioned as the group’s next-generation loyalty platform, leveraging AI to build a large, data-driven customer database and remove operational inefficiencies from the airline.

"ADE will bring greater efficiency and lost costs and more utilisation on our fleet. Teleport will add more cargo and revenue to the airline, and finally, Santan will have better food at a lower cost," wrote Fernandes.

Capital A will also apply to be removed from its PN17 classification, which it has held since the pandemic. Following the disposal of its airline business, Capital A will operate as a holding company for the group’s non-aviation businesses, while the newly consolidated AirAsia airline sits as a separate listed entity.

Fernandes added that dividends are a near-term goal once the group reduces the debt accumulated during COVID-19, signalling a shift from survival and restructuring towards capital growth and shareholder returns. "And we did this all ourselves. Can’t wait to tell the world starting today," added Fernandes.

As the restructuring nears completion, the consolidation of AirAsia X under the AirAsia name marks a symbolic and operational reset for the airline group, one that ties its future growth story back to a single, globally recognised brand.

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