(Reuters) -Malaysian airline operator Capital A, also the parent of AirAsia, announced deals worth 6.8 billion ringgit ($1.42 billion) on Thursday, in a move to create a new listed entity and streamline operations by merging various airline affiliates.
As part of the deals, long-haul airline AirAsia X will take over Capital A’s aviation business and eventually create a new company thereby taking over the listing status of AirAsia X.
Capital A’s aviation business comprises airlines AirAsia Bhd and AirAsia Aviation Group.
The deal will allow Capital A to get rid of the significant liabilities associated with the airline units that it is selling.
The consolidated new aviation firm will be named AirAsia Group, Capital A said in a statement.
“The new aviation group will operate and provide a full spectrum of short, medium and long-haul low-cost air transportation services, with domestic flights and international flights from Malaysia, Thailand, the Philippines, Indonesia and Cambodia to…
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