AirAsia X Extends Acquisition Timeline and Seeks Additional Funding
AirAsia X (D7), headquartered at Kuala Lumpur International Airport, has secured an additional two months to finalize its proposed acquisition of Capital A’s short-haul aviation businesses. This extension pertains to the acquisition of AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad, as announced in a Bursa Malaysia filing on January 24, 2025.
In a separate statement, AirAsia X revealed, “During this period, AirAsia X will also finalise the definitive terms with identified investors for the proposed private placement, aimed at raising gross proceeds of MYR1 billion ringgits (USD230 million).” CEO Benyamin Ismail commented on the extension, stating, “This extension is a pragmatic step to ensure all aspects of the transaction are thoroughly and meticulously addressed, including securing the final approvals and consents from relevant authorities, financiers, and lessors – most of which have already been substantially completed.”
Under the terms of the deal, AirAsia X is set to take over the operations of all AirAsia airlines. This includes Malaysia’s AirAsia and its affiliates in the Philippines, Indonesia, Thailand, and Cambodia, which are currently under the AAAGL umbrella. The acquisition is expected to unlock various synergies, including improved network connectivity, optimized fleet utilization, and enhanced cost efficiencies. Additionally, the deal aims to assist the parent company, Capital A, in exiting its Practice Note 17 status, a designation Bursa Malaysia imposed in 2022.
The AirAsia X statement further added, “By consolidating operations under one entity, the airline will be better positioned to expand its market presence across Asia-Pacific and beyond while delivering greater value to shareholders and customers.”
This strategic move underscores AirAsia X’s commitment to strengthening its market position and enhancing operational efficiencies through consolidation and strategic financial planning.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com