AirAsia X Accelerates With A Transformative RM6.8 Billion Acquisition, Creating A Formidable Aviation Force To Capitalize On Surging Travel Demand Across New Key Markets
Category:NewsAirAsia X announces a monumental RM6.8 billion acquisition to consolidate AirAsia’s airlines, boosting financial strength and capturing rising travel demand in Asia Pacific.
AirAsia X (AAX) has issued a comprehensive circular to its shareholders outlining the Proposed Acquisitions of Capital A Berhad’s entire equity stake in AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) for RM6.8 billion.
These acquisitions mark a significant milestone in consolidating the AirAsia brand’s low-cost carriers into a unified aviation group with an enhanced financial foundation. This strategic initiative aims to establish a powerful aviation entity, encompassing seven airlines across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia.
Once the transaction is completed, the restructured aviation group will offer a full range of short, medium, and long-haul air travel services to tap into the rising travel demand. According to IATA, passenger traffic in the Asia Pacific region is projected to grow by 17.2% in 2024.
The acquisitions will form a revitalized aviation group, further strengthened by the delivery of around 400 new Airbus aircraft over the next decade. This will give AirAsia a competitive edge in fleet expansion and market share, supporting continued growth in both established and emerging markets across ASEAN, China, India, Australia, and beyond.
The circular, now available on AAX’s website, provides further details on the proposals, including the issuance of free warrants, private placement, AAAGL acquisition, AAB acquisition, share capital reduction, and subscription options. Shareholders are encouraged to review the document before the Extraordinary General Meeting (EGM) on 16 October 2024.
