—plans to consolidate its aviation businesses under the group’s long-haul subsidiary AirAsia X amid a post-pandemic rebound in travel demand.Bhd and AirAsia Aviation Group will be merged into AirAsia X. Fernandes hopes the combination will strengthen AirAsia X, which in October was deemed a financially distressed company under Bursa Malaysia’s Practice Note 17 after auditor Ernst & Young cast significant doubt on the airline’s ability to continue as a going concern.
“I have full confidence that we will be in a position soon to remove the PN17 status without involving shareholders’ value dilution, subject to necessary approvals including from Bursa Malaysia,” FernandesThe plan, which is expected to be completed in July 2023, entails the divestment of Capital A’s shareholdings in AirAsia and AirAsia Aviation to AirAsia X in an all-share deal. The consideration shares to be issued by AirAsia X will then be distributed to Capital A shareholders.