AirAsia X to Rebrand as AirAsia as Capital A Exits PN17
AirAsia X is set to rebrand as AirAsia effective January 19, 2026, marking a major milestone in the corporate restructuring of parent Capital A and its planned exit from Practice Note 17 (PN17) status.
In a January 13 statement, Capital A CEO Tony Fernandes confirmed that the name change will coincide with the consolidation of the group’s long-haul and short-haul airline operations into a single aviation entity. The restructuring centers on the disposal of Capital A’s aviation assets to AirAsia X in a transaction valued at MYR6.8 billion (USD1.7 billion), effectively unifying the group’s flying businesses under one airline and one brand.
“AirAsia will be one airline group and one brand,” Fernandes said, adding that the combined carrier will pursue global ambitions built on a simplified and more cost-efficient operating model. He also revealed that the group is finalising a new aircraft order aimed at reducing unit costs and optimising the fleet, although details on aircraft types and volumes were not disclosed.
The restructuring timetable calls for the distribution of AirAsia X shares to Capital A shareholders following the completion of a MYR1 billion (USD246.5 million) private placement. Capital A expects the share allocation to be completed by January 16, with the enlarged AirAsia X share base scheduled to list on Bursa Malaysia on January 19.
On the same day, Capital A plans to formally submit its application for the lifting of PN17 status, which applies to financially distressed listed companies. A final court hearing related to the process is scheduled for January 21. Once the aviation assets are divested, Capital A will transition into a non-aviation holding company focused on businesses such as maintenance, repair and overhaul (MRO), logistics, and digital services.
Fernandes outlined ambitious financial and strategic targets for the newly consolidated airline, including a goal of achieving 30% EBITAR margins. He described the vision as creating a “low-cost version of Emirates and Qatar Airways,” potentially anchored around a hub at Bahrain International Airport. Dividend payments, he added, will be considered once pandemic-era debt levels are significantly reduced.
Capital A plans to host an investor day after releasing its fourth-quarter 2025 results, where it will provide further details on the post-restructuring strategy and long-term direction of the unified AirAsia airline group.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com