Malaysia’s Capital A aims to divest its aviation business on 11 November, as it enters the “last leg” of the long-drawn reorganisation process.
Disclosing the timeline towards divestment, the parent company of the AirAsia group of airlines says it is now working through clinching approvals from the Thai Securities and Exchange Commission.
It expects to gain Thai SEC approval – the remaining regulatory hurdle – in mid-September, before it obtains all remaining consent letters for the divestment.
Capital A is looking to sell its aviation business to sister unit AirAsia X, as part of efforts to restructure its business and exit financially distressed status. The deal – first announced in early 2024 – will eventually see AirAsia and AirAsia X managed under a single entity, with a combined fleet of Airbus A320-family narrowbodies and A330s.
By early November, AirAsia X is expected to have been allotted shares of the aviation business, culminating in the eventual divestment on 11 November.
A day later, Capital A will lodge a court order for the removal of its financially-distressed – or Practice Note 17 – status. It expects that process to wrap up by 25 November.
It is the first time that the group has detailed its steps – and set a date – for the divestment of its aviation business to AirAsia X. The deal has been delayed on several occasions, but Capital A says it is confident the deal is “on track” to be completed by the end of the year.
AirAsia’s revenues for the quarter ended 30 June fell 3% year on year to MYR 4.5 billion ($1.1 billion). This was due mainly to weaker tourism demand in Thailand, where the group has significant operations in.
The aviation business swung to a profit after tax of MYR 884 million, against a loss of MYR 552 million.
