Capital A to Merge Aviation Business Under AirAsia X
- Capital A is seeking better access to financing as it expands
- Shares of AirAsiaX and Capital A jump after the announcement
AirAsia aircraft at Kuala Lumpur International Airport 2 in Sepang, Selangor, Malaysia.
Photographer: Samsul Said/BloombergThis article is for subscribers only.
Malaysia’s Capital A Bhd., which operates budget carrier AirAsia, will hive off its aviation business to its long-haul affiliate as the group seeks to streamline its operations and gain better access to financing.
The company entered into a non-binding offer to sell its Malaysian airline unit and AirAsia Aviation Group Ltd. — which consists of its subsidiaries in Thailand, Indonesia, Philippines and Cambodia — to AirAsia X Bhd.