KUALA LUMPUR- Malaysian low-cost carrier, AirAsia (AK) is evaluating deals with major aircraft manufacturers to purchase at least 100 new planes. The Malaysian budget airline seeks to expand its current fleet of Airbus A321 aircraft.
CEO Tony Fernandes confirms the company has opened discussions with Airbus, Embraer, and China’s COMAC, The New Straits Times reported.
AirAsia New Order
AirAsia’s team will visit Brazil to assess Embraer aircraft and Canada to examine Airbus A220s.
The fleet expansion moves beyond the A321 models that currently serve as the airline’s backbone. While the exact number of aircraft remains subject to board approval, Fernandes indicates the minimum requirement stands at 100 planes.
The announcement came during AirAsia MOVE’s Christmas celebration at KLIA Terminal 2. The expansion aligns with AirAsia’s plans to increase its flight routes and destinations in the coming year.
AirAsia tested Airbus’s A220 during a demonstration flight last week, while CEO Tony Fernandes shared images of Embraer’s E2 aircraft interior on social media. Chinese manufacturer Comac showcased its C919 widebody aircraft in Malaysia during March’s Southeast Asia roadshow.
Billion Dollar Merger
The merger between AirAsia and AirAsia X moved forward after AirAsia X announced its RM6.8 billion acquisition of AirAsia and AirAsia Aviation Group Ltd in September. The deal will unite both carriers under one corporate structure.
The airlines set an ambitious passenger target of 90 million for 2025, building on their current achievement of 70 million passengers. Transit passengers make up 21 percent of their total traffic, establishing the airline as a regional hub comparable to Dubai and London.
The growing transit passenger numbers drive the airline’s expansion plans, supporting its transformation into a major connection point for air travel in Southeast Asia.
MUST READ: AirAsia to Launch New Flights to Europe and US by 2030, Expansion Plans and More
Regularisation Plan
Capital A Berhad has submitted its Proposed Regularisation Plan to Bursa Malaysia Securities Berhad to exit its Practice Note 17 status. The plan demonstrates the company’s improved financial stability and growth strategy.
CEO Tony Fernandes announces a capital reduction of up to RM6 billion to strengthen the company’s balance sheet. This move will eliminate losses from the COVID-19 pandemic and better reflect Capital A’s asset values.
The company seeks to match AirAsia X’s successful PN17 exit achieved last year. Fernandes emphasizes the rarity of companies successfully exiting PN17, particularly during pandemic challenges.
The regularisation plan requires four key approvals to proceed. Bursa Malaysia must first approve the plan. The company will then hold an Extraordinary General Meeting for shareholder endorsement. The High Court of Malaya must confirm the approved plan. Finally, the completion of these steps will enable PN17 status removal.
The plan’s success depends on completing the aviation disposal. Capital A will continue managing market competition and operational risks while executing its regularisation strategy.
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