alaysia conglomerate Capital A said Monday it plans to sell its budget airline AirAsia to its medium-haul affiliate AirAsia X in a bid to streamline operations.
Under the terms of the non-binding agreement, AirAsia Malaysia and AirAsia subsidiaries in Cambodia, Thailand, Indonesia and the Philippines would be merged with AirAsia X, it said.
The new entity would handle short-, medium- and long-haul flights, Capital A chief executive Tony Fernandes told reporters, enabling the conglomerate to focus on its non-aviation businesses.
“We are going to merge the two airlines and double passenger traffic to 200 million (per year) from about 80 to 90 million currently,” Fernandes said.
AirAsia has a fleet of 166 A320 and A321 planes while AirAsia X has 17 A330s in operation.
The merged airline would start flying new routes…
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