Capital A shareholders approve disposal of aviation business to AirAsia X

The post Capital A shareholders approve disposal of aviation business to AirAsia X appeared first on TD (Travel Daily Media) Travel Daily Media.

Capital A announced that shareholders voted in favour of the proposed disposal of the Group’s aviation business to AirAsia X at an Extraordinary General Meeting (EGM) convened on Monday, 14th October.

This approval marks a pivotal milestone, enabling Capital A to focus on the four strategic pillars that will drive its transformation into a future-proofed tech-driven aviation services company via Capital A Aviation Services (CAPAS), MOVE Digital, Teleport (Logistics), and the Brand AA company.

With regard to next steps, Capital A will seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment of the company’s issued share capital. 

It will also be securing approval from the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) at the next EGM, marking another critical milestone in Capital A’s journey.

These critical steps will enable Capital A to achieve a clean balance sheet and focus on submitting its regularisation plan before the year end, with the aim of exiting Practice Note 17 (PN17) status.

Capital A Berhad chief executive Tony Fernandes said: “This is a watershed moment for Capital A and the AirAsia group of airlines, building on the tremendous value created over the past 23 years. With shareholder approval to divest the aviation business, we are unlocking a bright new future by delineating our pure-play aviation business from aviation support services. This clarity will benefit both shareholders and customers, allowing us to redefine the future of travel in the region.”

Working on a broader strategy

Fernandes added that Capital A’s broader strategy is aimed at developing technology-driven aviation services and digital businesses that will support the significant anticipated growth in travel demand. 

He said: “Separating the aviation and non-aviation businesses allows us to sharpen our focus on maturing the high-growth aviation support services and digital businesses we have built to support the aviation business. Upon securing AAX shareholders approval at the [next] EGM, the aviation businesses will be able to consolidate to form a game-changing AirAsia Group, with synergies between short-haul and long-haul operations driving greater efficiency, profitability, and shareholder returns.”

Fernandes further emphasised that Capital A is well-positioned for accelerated growth, “From digital travel to logistics and brand management, we are building a robust, tech-powered aviation services ecosystem. Today’s approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalise our regularisation plan and exit PN17 status soon.”

This restructuring aligns with the Group’s strategy to evolve into an agile, technology-focused organisation, built around four key pillars: aviation services, travel and fintech via MOVE Digital, the expansion of logistics solutions throughout ASEAN, and managing the globally recognised AirAsia brand through strategic licensing and partnerships.

The post Capital A shareholders approve disposal of aviation business to AirAsia X appeared first on Travel Daily Media.

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