KUALA LUMPUR — Malaysian conglomerate Capital A said on Friday it had finalized a 6.8-billion ringgit ($1.4 billion) deal to merge its airline affiliates under an entity to be called AirAsia Group.
Capital A, led by mogul Tony Fernandes and includes a logistics business and digital payment Bigpay, said in January it would sell its budget airline AirAsia to its medium-haul affiliate AirAsia X.
The deal announced on Friday will include another affiliate, AirAsia Aviation Group, in that sale.
Fernandes, who has delayed plans to retire from Capital A, told reporters the plan would help the company move out of the financial distress status under which it has operated since 2020.
READ: Malaysian airline mogul Fernandes delays retirement
“The strategic move to merge its various airline units is principally driven by growth,” Fernandes said.
“By putting it together, our cost structure will be lower and margins higher,” he said.
The new entity would likely be listed in…
#AirAsia
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