AirAsia, led by chief executive Tony Fernandes of Capital A, has announced plans to expand its operations beyond Southeast Asia by offering aviation consulting and planning services. The company has finalized a sales agreement for Capital A’s strategic divestment and AirAsia Group’s acquisition of AirAsia airlines.
As per the recent announcement, all airlines under the AirAsia umbrella will be consolidated under the newly listed AirAsia Group. Meanwhile, Capital A will retain four non-aviation businesses, which include Capital A Aviation Services, Teleport, Move Digital, and Capital A International. The estimated value of this divestment stands at 6.8 billion ringgit or US$1.42 billion.
Mr. Fernandes, who extended his retirement for another five years, mentioned that the focus of AirAsia Group will primarily be on airlines in Southeast Asia. AirAsia Consulting, soon to be rebranded as Capital A Consulting, will raise its own funds to invest in airlines outside the region.
Highlighting the recent interest in acquiring SriLankan Airlines, he clarified that the inquiry was made by AirAsia Consulting, not AirAsia.
With a wealth of 23 years of experience, the consulting arm is set to offer services to various aviation-related businesses, leveraging AirAsia’s expertise. Mr. Fernandes expressed that many governments in other regions are keen on having AirAsia establish low-cost carriers; however, consultancy services align better with the company’s strategic vision.
Post the divestment of the airline business, Capital A Aviation Services is exploring opportunities to invest in building or operating new airports, with Thailand being among the potential candidates.
The agreement with Airbus for an order of 362 Airbus A321 jets, scheduled for delivery between 2024 and 2035, provides flexibility to switch to other models or cancel orders if newer aircraft become available for lease.
Consolidation of the order book aims to facilitate growth for all AirAsia carriers amidst industry-wide aircraft shortages. The move is expected to enhance operational efficiency and cost-effectiveness, advancing fleet management and overall business capabilities.
Moreover, AirAsia Move introduced its Asean Explorer Pass, an annual travel pass spanning AirAsia’s international and domestic networks. Following the success of the previous edition, which saw over 80,000 international flight redemptions in a year, this initiative aims to enhance the travel experience for customers.
