AirAsia X Bhd is set to be renamed AirAsia starting January 19, marking a significant milestone in the airline’s ongoing restructuring and consolidation process, according to its founder Tan Sri Tony Fernandes. The move comes as AirAsia finalises steps to unify all its aviation operations under a single brand and corporate entity.
Capital A chief executive officer Tan Sri Tony Fernandes.
In a LinkedIn post on Tuesday, Fernandes highlighted that the consolidation will result in “one airline group and one brand,” streamlining both the long-haul and short-haul operations under the AirAsia name. AirAsia X, which currently operates the group’s long-haul flights, is in the final stages of completing its RM6.8 billion acquisition of short-haul aviation businesses from its sister company, Capital A Bhd.
The restructuring will also allow Capital A to shed its financially distressed PN17 status, which has been in place since the pandemic, and refocus as a holding company for AirAsia’s non-aviation businesses. Fernandes noted that the reorganisation of the airline operations is a key step in strengthening the group’s financial and operational structure, allowing AirAsia to operate more efficiently and cohesively.
Fernandes further revealed that AirAsia is in the process of finalising new aircraft orders. The refreshed fleet is expected to reduce operational costs and improve margins, with the founder aiming for a 30% margin on earnings before taxes, depreciation, and amortisation (EBITDA). He also expressed confidence that the move will enhance shareholder value, targeting a significant increase in the company’s stock price in the near term.
With the integration of long-haul and short-haul operations under a single brand, the rebranded AirAsia is poised to strengthen its market position as one of Southeast Asia’s leading low-cost carriers, offering a more seamless travel experience for passengers while boosting operational efficiency and profitability.
