KUALA LUMPUR- AirAsia (AK), a Malaysian low-cost carrier, is in talks with major aircraft manufacturers to purchase 100 new planes. The Malaysian budget airline plans to expand its current fleet of Airbus A321s.
According to The New Straits Times, CEO Tony Fernandes confirmed that the airline is in talks with Airbus, Embraer, and China’s COMAC.
AirAsia New Order
AirAsia’s crew will visit Brazil to evaluate Embraer aircraft, and Canada to investigate Airbus A220s.
The fleet expansion extends beyond the A321 types that currently form the airline’s backbone. While the actual number of aircraft is subject to board approval, Fernandes says the minimum required is 100 planes.
The statement was made during AirAsia MOVE’s Christmas event at KLIA Terminal 2. The expansion is consistent with AirAsia’s objectives to enhance its flight routes and destinations in the coming year.
AirAsia tested Airbus’ A220 during a demonstration flight last week, while CEO Tony Fernandes posted photos of Embraer’s E2 aircraft interior on social media. Comac, a Chinese manufacturer, displayed its C919 widebody aircraft in Malaysia during March’s Southeast Asia exhibition.
Billion Dollar Merger
The merger between AirAsia and AirAsia X went ahead after AirAsia X announced its RM6.8 billion acquisition of AirAsia and AirAsia Aviation Group Ltd in September. The transaction will combine both airlines under a single corporate structure.
The airlines set an ambitious passenger target of 90 million for 2025, adding to their present total of 70 million passengers. Transit passengers account for 21% of total traffic, positioning the airline as a regional hub equivalent to Dubai and London.
The airline’s expansion goals are driven by the increased number of transit passengers, which will help it become a significant connection point for air travel in Southeast Asia.
Regularisation Plan
Capital A Berhad has submitted its proposed Regularisation Plan to Bursa Malaysia Securities Berhad in order to escape its Practice Note 17 status. The plan illustrates the company’s increased financial stability and expansion strategy.
CEO Tony Fernandes has announced a capital decrease of up to RM6 billion to enhance the company’s balance sheet. This step will remove COVID-19-related losses and better reflect Capital A’s asset values.
The startup aims to repeat AirAsia X’s successful PN17 exit from last year. Fernandes underlines the difficulty of corporations successfully quitting PN17, especially during pandemic conditions.
The regularisation strategy requires four critical approvals to get forward. Bursa Malaysia must first accept the proposal. The corporation will subsequently conduct an Extraordinary General Meeting to obtain shareholder approval.
The Malayan High Court must confirm the authorized proposal. Finally, completing these steps will permit the removal of the PN17 status.
The plan’s success is dependent on finishing the aviation disposal. Capital A will continue to manage market competition and operational risks while pursuing its regularisation agenda.