KUALA LUMPUR: Capital A Bhd plans to dispose of its entire stakes in AirAsia Bhd and AirAsia Aviation Group Limited (AAAGL) to AirAsia X Bhd, for a sum to be agreed upon, as part of a business realignment strategy.
AirAsia operates passenger airine services in Malaysia while AAAGL does the same through its subsidiaries from Thailand, Indonesia, Philippines and Cambodia.
AirAsia X provides mid-range air transportation services.
Capital A in its filing with Bursa Malaysia Securties Bhd said the proposed aviation business disposal is to streamline the company and its group of companies' core business activities to focus on aviation services and digital businesses which are essential and complementary to the passenger airlines business.
The aviation services and digital businesses mainly encompasses;
(i) aviation maintenance, repair and overhaul segment carried out by Asia Digital Engineering Sdn Bhd, a wholly-owned subsidiary of the company;
(ii) super app segment carried out by AirAsia SuperApp Sdn Bhd, a 96.19 per cent subsidiary of the company;
(iii) logistics segment carried out by Teleport Everywhere Pte Ltd, a 77.56 per cent subsidiary of the company; and
(iv) digital payments segment carried out by BigPay Pte Ltd, a 99.56 per cent subsidiary of the company.
AirAsia X in a separate announcement said the proposed acquisitions can be a platform for the company to become a sole regional low-cost aviation group which consolidates the airlines already servicing of both short-and-medium-haul routes under the well-established AirAsia brand name.
It will also enable the already-present synergy between all the airlines to be further enhanced with a more focused management with much distilled strategic direction which in turn shall boost the company's market share leadership and open up next-level growth opportunities.
"A consolidated group of airline businesses is also envisioned to register further cost effectiveness attributable to a streamlined decision-making structure and fortified leverage in contracts negotiations through economies of scale, ultimately presenting a sounder ground for profitability," AirAsia X said.
