Capital A plans new aviation group, EGM circular submitted

Capital A CEO Tan Sri Tony Fernandes is going to register a new aviation group, to this end Capital A has submitted the EGM circular to Bursa Malaysia.

Once approved, EGM will be called 21 days later. 

“Capital A has submitted the EGM circular to Bursa Malaysia detailing the proposed disposals of its aviation businesses to AirAsia X as part of our efforts to regularise our financial position. 

“Once approved, EGM will be called 21 days later, and we hope to list the new aviation group by December,” he said via LinkedIn post. 

The EGM circular outlined the proposed disposal of its entire stakes in AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) to AirAsia X (AAX). 

Shareholders will have the opportunity to approve these disposals at the EGM. 

He added that Capital A shareholders will now have shares in a very strong Digital Aviation Services Group which has huge growth potential and shares in a stronger and better margin airline with 400 planes of growth to come in the AirAsia group.

“This ongoing transformation will not only redefine the aviation landscape but deliver tremendous value to the shareholders. They will receive AAX shares upon the completion of the proposals. 

“The share distribution not only rewards shareholders for their continuous support but offers them an opportunity to maintain their investment in aviation while having clarity of investment in two distinct entities with different business activities,” he said. 

He said Covid-19 caused both AirAsia X and Capital A to go into PN 17, and once the EGM circular is approved Capital A will come out of PN 17.

“I am confident our Aviation is going from strength to strength. All lingering issues from Covid-19 will be resolved by the end of the year. 

“With our strong ancillary revenue model, a valuable order book, and a versatile fleet of Airbus A321LR and A321XLR, AirAsia is ready for a monumental year in 2025,” he said.