Photo credit: Bangkok Post
All airlines operated by AirAsia will be consolidated under the new AirAsia Group by next month following the completion of Capital A’s restructuring, with the goal of becoming the world’s first low-cost carrier fleet composed entirely of narrow-body aircraft.
Tony Fernandes, CEO of Capital A Bhd, announced that two separate entities will eventually be formed: a unified AirAsia Group overseeing the airlines, and Capital A responsible for non-aeronautical businesses.
AirAsia X will be rebranded as AirAsia Group to manage seven airlines, focusing on narrow-body aircraft operations across multiple hubs in Southeast Asia. The group’s fleet will include long-range Airbus A321XLRs, with plans to establish new hubs in the Middle East and Europe.
Fernandes noted that all airlines will operate as distinct legal entities, with operations in Thailand set to merge. He also mentioned that the group has canceled outstanding orders for wide-body Airbus A330 aircraft and plans to retire these within the next 5-6 years.
To expand further in the region, the group is exploring the launch of AirAsia in Vietnam but currently has no plans to enter the Singapore market. Fernandes stated that, over the next decade, the group aims to grow its fleet to over 600 aircraft from the current 255, enabling it to serve 155 million passengers—more than doubling current passenger numbers—and operate across 175 destinations, up from 143.
Meanwhile, Capital A will oversee five companies, including ADE, an engineering firm that has established an entity in Thailand and is looking to develop new hangars and line maintenance facilities. Other subsidiaries include logistics operator Teleport, online travel platform MOVE, food and beverage brand Santan, and brand licensing and IP business AirAsia Next.
Fernandes highlighted that before the pandemic, the group primarily generated revenue from airlines, but it has since transformed into a broader ecosystem. Additionally, Capital A signed a letter of intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to explore turning Bahrain into a Middle Eastern hub.
The LOI lays a foundation for extensive cooperation in airline operations, cargo and logistics, maintenance capabilities, and talent development, marking a strategic move to strengthen connections between Southeast Asia and one of the world’s fastest-growing aviation regions.