AirAsia has announced the merger of AirAsia and AirAsia X in order to establish Southeast Asia as a multi-hub for aviation. The company plans to make Thailand its hub for flights to Europe. The founder of AirAsia, Tony Fernandes, stated that this merger will allow the airline to expand to other regions by taking advantage of multiple hubs in major cities across Southeast Asia.
The first step in this expansion plan is to enter Central Asia, including countries like Kazakhstan and Tajikistan, and reintroduce flights to Europe by the end of 2024. Fernandes also revealed that Kuala Lumpur in Malaysia and Manila in the Philippines would become hubs for destinations in Africa and the US, respectively. This would allow travelers from any country to visit long-haul destinations by transferring at other AirAsia hubs within the region.
Under this new direction, AirAsia X will acquire the aviation business from Capital A, including AirAsia Berhad in Malaysia, AirAsia Aviation Group in Thailand, Indonesia, the Philippines, and a new carrier in Cambodia. This will lead to the establishment of a new company called AirAsia Aviation Group. Fernandes believes that this merger will increase flexibility for all airlines as they will be able to deploy more new routes using both wide-body and narrow-body aircraft.
Fernandes is set to meet with Prime Minister Srettha Thavisin to discuss these plans and the future of the aviation industry. The merger in Thailand will involve merging Thai AirAsia and Thai AirAsia X into a single airline. Fernandes also mentioned that Thailand’s decision to allow visa-free travel for Chinese and Indian citizens has been a significant driver for aviation, similar to Malaysia.
Despite the challenges posed by the pandemic, AirAsia Aviation Group has seen passenger traffic recovering to 78% of pre-pandemic levels by the end of 2023, with a load factor 5% higher than before. The group currently operates 161 aircraft out of a total of 212, and aims to have 30 more aircraft back in operation by the first quarter of this year. The company reported a total revenue of US$3.41 billion, generated from operating 275 routes.
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