Capital A Nears Restructuring, Eyes Major Aircraft Orders Soon

Capital A, parent company of AirAsia, is prioritizing the completion of its corporate restructuring before placing new aircraft orders, according to CEO Tony Fernandes. Speaking to Reuters following the Paris Air Show, Fernandes confirmed that while no orders were announced at the event, the company is preparing to finalize major deals within the next one to three months.

“We want to make sure we clear out of our restructuring first,” Fernandes said, referring to the company’s efforts to exit Bursa Malaysia’s Practice Note 17 (PN17) classification for financially distressed firms. Capital A is in the final stages of resolving its PN17 status and aims to conclude the process by July.

Once restructuring is complete, AirAsia is expected to place two significant aircraft orders. The first includes 50 to 70 Airbus A321neo jets, while the second would cover around 100 regional aircraft, with Airbus A220s currently favored over Embraer E2s, although financing remains a factor.

“We’re still doing a lot of work with Airbus and other manufacturers,” said Fernandes. “I think we’ll look to do something imminently.”

AirAsia, an all-Airbus operator, already has 367 aircraft on order, including 331 A321-200NX and 36 A321-200NX(LR) jets. These orders predate the pandemic, during which deliveries were paused. The airline resumed receiving new aircraft in 2024.

With subsidiaries including AirAsia Cambodia, Philippines AirAsia, Thai AirAsia, Indonesia AirAsia, and AirAsia X, Fernandes said the group is now back in growth mode and ready to expand its fleet once the restructuring is finalized.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com