Capital A (formerly AirAsia Group), the parent holding of AirAsia (AK, Kuala Lumpur Int’l), says its subsidiary AirAsia Aviation Group has entered into a 51/49 joint venture with hospitality group Sivilai Asia to launch AirAsia Cambodia (Phnom Penh).
The two companies said that subject to regulatory approvals and certification, the new LCC should launch in the second half of 2023. Capital A Chief Executive Tony Fernandes told Bloomberg that AirAsia Cambodia would launch with two aircraft, most likely A321-200Ns, and later expand to as many as 15.
"2022 was about restarting our airline to pre-COVID levels. That machine is in place and will be completed by the second quarter of 2023. The second half of 2023 will be when we focus on our continued efforts in growth. We are confident of profitability in the first year. As Cambodia is a market that is familiar to us and where we have deep infrastructure in place," he said.
In a Bursa Malaysia disclosure, Capital A clarified that the initial capital contribution would be USD5 million. Capital A, as the majority shareholder with a 51% stake, will invest USD2.55 million and Sivilai Asia – USD2.45 million. The investment would be paid in three tranches – the first USD2.5 million upon the execution of the JV agreements, the second USD1.5 million within the next three months, and the final USD1 million at least one month before the start of operations. Capital A expects that in the long term, AirAsia Cambodia’s paid-up capital will increase to USD25 million.
The group did not disclose any specific routes but said it would focus on connecting Phnom Penh, Siem Reap, and Sihanoukville with existing points in its ASEAN network, as well as India, China, and North Asia. It would operate within a four-hour radius from its Cambodian bases.
Capital A said it would focus on AOCs in the ASEAN countries, following the bankruptcy of AirAsia Japan and the divestment from AirAsia India. Besides AirAsia and AirAsia X in its home market, Capital A has stakes in Thai AirAsia, Thai AirAsia X, Indonesia AirAsia, and Philippines AirAsia. Its previous attempts to enter other ASEAN markets – not just Cambodia via AirAsia Cambodia (2017) (Phnom Penh) – but also Myanmar and Viet Nam – faltered before COVID.
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Capital A CEO Tony Fernandes says he won’t be merging the AirAsia aviation businesses. Instead, they will continue to operate as separate businesses under the AirAsia Aviation Group (AAG) entity. This was despite a November 29 Bursa Malaysia filing indicating otherwise.
Speaking at an AirAsia media event on December 5, Fernandes said the various AirAsia brands, including AirAsia, AirAsia Philippines, Thai AirAsia, Indonesia AirAsia, Thai AirAsia X, and AirAsia X will keep flying as separate entities.
“We are just injecting AirAsia airlines into [AirAsia X] AAX’s listing status… there is no merger. AAX will be renamed AAG and there will be six airlines under it,” the Star news portal reports Fernandes saying. “As one company, we can take out a lot of costs but there will be separate operations by each individual airline.” AAX is the listing abbreviation for the AirAsia X airlines.
He likened the structure to IAG International Airlines Group, which owns British Airways, Aer Lingus, and Iberia, but operates them as separate…
MYAirline (MYM, Kuala Lumpur Int’l) has commenced revenue operations, with the first flights successfully taking off to Kota Kinabalu, Kuching, and Langkawi on December 1. CEO Rayner Teo says interest in the new airline has been strong and load factors on the first day exceeded 80%.
Teo also told media assembled for the first flights that MYAirline was looking to commence international operations by March 2023, with Indonesia, Singapore, Thailand, and Viet Nam among the shortlisted countries.
“If all goes well, we hope to target the first international flight at the end of the first quarter of next year,” he said. “It’s a bit complicated in terms of getting approval because we have to have discussions with more than one country.”
MYAirline is operating out of KLIA2 terminal, home to AirAsia (AK, Kuala Lumpur Int’l), and Teo says the next local destinations will be Penang, Sibu, and Kota Bharu, with flights to those destinations awaiting approval from Malaysia’s Civil Aviation Commission (MAVCOM). The airline presently has…
Talks are underway to allow the long-haul low-cost carrier AirAsia X to acquire Capital A Berhad’s aviation arm, AirAsia, and the AirAsia Aviation Group Limited (AAAGL) stakes in Philippines AirAsia, Indonesia AirAsia, and Thai AirAsia. If the deal goes through, the assorted AirAsia branded airlines and companies will become a single aviation business.
In a November 29 Bursa Malaysia filing seeking an extension of time to submit AirAsia’s regularisation plan, Capital A CEO Tony Fernandes flagged the merger and said that it wouldn’t involve any cash. Instead, Capital A shareholders would receive AirAsia X (AAX) shares.
“The plan envisaged will entail the disposal of Capital A’s aviation businesses, namely AirAsia Berhad and AirAsia Aviation Group Limited, to AirAsia X Berhad (AAX),” Fernandes said in the filing. “Capital A shareholders… will retain a direct interest in the aviation businesses via AAX, following the restructuring. In essence, via this scheme, Capital A’s shareholders’ value will be preserved.”
The various AirAsia branded airlines operate short to medium-haul domestic and international flights while AirAsia X is…
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