KUALA LUMPUR, 9 January 2024: AirAsia X (AAX) confirmed Monday that it has entered into a non-binding letter of acceptance with Capital A for the proposed acquisitions of its aviation businesses, namely AirAsia Berhad and AirAsia Aviation Group Limited.
The strategic move will position AAX as the overarching regional aviation provider for all short and medium-haul routes under the AirAsia brand name.
The acquisition should provide advantages, including a strengthened market position, increased operational efficiency, and ultimately driving cost savings and enhanced financial performance.
The decision to combine the airline businesses through these acquisitions leverages AAX’s robust recovery trajectory after its upliftment from the Practice Note 17 (PN17) status in November 2023.
AirAsia X Chairman, Dato’ Fam Lee Ee said: “These strategic acquisitions are pivotal milestones in AAX’s post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning. The consolidation under the AirAsia brand as a one-listed entity reflects our commitment to capitalise on our regained strength and market confidence to deliver a unified and unparalleled travel experience for our guests and significant value for our shareholders.
“Leveraging the strengths of all airlines under the AirAsia brand, we are poised to create a pure-play entity that propels us forward. The synergy created through these strategic acquisitions represents more than just a financial consolidation; it symbolises our role as a trailblazer in shaping the future of the aviation industry. The future holds immense potential, and we are excited to embark on this transformative journey.”
The detailed announcement on the Proposed Acquisitions, including their effects on various financial metrics, is expected to be announced in due course, subject to the definitive share sale and purchase agreement and its completion.
(SOURCE: AirAsia)
