Malaysia’s Capital A to merge AirAsia brands, as CEO Tony Fernandes set to retire within five years

Full details of the deal would be announced “in the next two weeks”, Fernandes told reporters at AirAsia’s 2024 outlook briefing.

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“We are going to merge the two airlines and double passenger traffic to 200 million [per year] from about 80 to 90 million currently,” Fernandes said.

“I have been doing it for 22 years. It is the right time to retire,” he said.

“Leadership is about knowing when to step aside.”

AirAsia X was removed from the classification in November, after undertaking measures to improve its financial position.

Fernandes said the airline sale would help Capital A raise funds and focus on its non-aviation business, which include payments firm BigPay, logistics arm Teleport, and online travel agency airasia MOVE.

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“We are confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognised for their intrinsic value and potential,” he said in a separate statement.

Capital A plans to present a PN17 regularisation plan by June 30, after the completion of the aviation disposal, he said.

Fernandes, a flamboyant former music industry executive, launched AirAsia as a low-cost airline flying to secondary cities in Southeast Asia, shaking up the region’s aviation sector and inspiring a slew of competitors.