Capital A has received approval from shareholders at its Extraordinary General Meeting (EGM) for the proposed disposal of its aviation business to AirAsia X (AAX). This decision will allow Capital A to focus on its four strategic pillars: Capital A Aviation Services (CAPAS), MOVE Digital, Teleport (Logistics), and the Brand AA company, aiming to become a future-proofed tech-driven aviation services company.

Tony Fernandes, CEO of Capital A Berhad, said: “This is a watershed moment for Capital A and the AirAsia group of airlines, building on the tremendous value created over the past 23 years. With shareholder approval to divest the aviation business, we are unlocking a bright new future by delineating our pure-play aviation business from support services. This clarity will benefit both shareholders and customers, allowing us to redefine the future of travel in the region.”

“Capital A’s broader strategy is aimed at developing technology-driven aviation services and digital businesses that will support the significant anticipated growth in travel demand. Separating the aviation and non-aviation companies allows us to sharpen our focus on maturing the high-growth aviation support services and digital businesses we have built to support the aviation business. Upon securing AAX shareholders approval at the EGM on 16 October, the aviation businesses can consolidate to form a game-changing AirAsia Group, with synergies between short-haul and long-haul operations driving greater efficiency, profitability, and shareholder returns.

Fernandes emphasized that Capital A is well-positioned for accelerated growth, “From digital travel to logistics and brand management, we are building a robust, tech-powered aviation services ecosystem. Today’s approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalize our regularization plan and exit PN17 status soon.”

This restructuring aligns with the Group’s strategy to evolve into an agile, technology-focused organization built around four key pillars:

  • Aviation Services (CAPAS): Delivering value through maintenance, repair, and overhaul (MRO) solutions via Asia Digital Engineering (ADE) and expanding Santan’s in-flight catering and retail offerings.
  • MOVE Digital: Leading innovation in travel and fintech through AirAsia MOVE and BigPay.
  • Teleport: Expanding logistics solutions across ASEAN with enhanced cargo operations and cross-border services.
  • Brand AA: Managing the globally recognized AirAsia brand through strategic licensing and partnerships.

“We are incredibly grateful for the unwavering support of our shareholders. Today’s vote reflects a shared belief in the long-term value Capital A can create across both aviation and non-aviation sectors,” Fernandes added.

Following today’s milestone approval, Capital A will seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment of the company’s issued share capital. It will also be securing approval from the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) at their meeting on 14 October, marking another critical milestone in Capital A’s journey.

These critical steps will enable Capital A to achieve a clean balance sheet and focus on submitting its regularization plan before the year-end to exit Practice Note 17 (PN17) status.