AirAsia X Denies Imminent Rebrand, Secures $247M Capital Raise
AirAsia X has clarified that any potential rebranding to the AirAsia name is not imminent and remains subject to regulatory approvals, despite earlier public comments suggesting the change could take effect this month. At the same time, the carrier confirmed it has successfully completed a MYR1 billion (USD247 million) private placement, strengthening its balance sheet as it advances a wider group restructuring.
In a January 14 filing to Bursa Malaysia, AirAsia X said it is evaluating a name change as part of the consolidation of the AirAsia Group’s aviation businesses. However, the airline stressed that “no definitive decision has been made, and no application has been submitted to the relevant authorities,” tempering expectations of an immediate rebrand.
The clarification followed remarks by Tony Fernandes, chief executive of parent Capital A, who had previously indicated that AirAsia X would be renamed AirAsia on January 19. AirAsia X’s filing makes clear that regulatory and corporate approvals are still required before any formal change can proceed.
Separately, the airline announced on January 13 that its MYR1 billion private placement was fully subscribed by a combination of institutional and private investors. The shares were priced at MYR1.65 (USD0.40) each, with the new shares expected to be listed on Bursa Malaysia on January 19. The capital raise represents a key milestone in AirAsia X’s efforts to stabilise its finances and support the next phase of group restructuring.
The proceeds from the placement are central to AirAsia X’s planned acquisition of Capital A’s aviation assets, a transaction that would result in an enlarged, consolidated AirAsia airline group. Management said the fresh capital will be used primarily to refinance existing debt, reduce interest expenses, and strengthen liquidity, providing a more sustainable financial platform for future growth.
Looking ahead, AirAsia X said the consolidated group plans to finalise a new aircraft order aimed at optimising fleet composition and lowering unit costs. Strategic plans also include developing a hub at Bahrain International Airport, positioning the airline to enhance long-haul connectivity while maintaining a low-cost operating model. The group has described its ambition as building a low-cost network that mirrors the connectivity strengths of major Middle Eastern carriers.
AirAsia X Chairman Fam Lee Ee said the successful capital injection would accelerate the group’s transformation into a “global low-cost network carrier.” While the timing of any rebranding remains uncertain, the completed fundraising underscores investor support for AirAsia X’s consolidation strategy and long-term growth vision.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com