Announcing the move, Capital A founder and CEO Tony Fernandes said Hamid’s onboarding will help spearhead growth, including a possible listing of the business in Hong Kong ⁠by mid-2026.

In January 2026, Capital A completed the sale of its short-haul aviation business to AirAsia X, allowing the latter to focus on expanding operations and reducing costs while Capital A looked to grow its businesses in areas including logistics, branding and aircraft maintenance. The move, along with Hamid’s appointment, comes amid both companies facing headwinds caused by the Middle East conflict, which has sent jet fuel prices soaring.

Capital A’s shares are down 27% over the past month, while AirAsia X’s have plunged 41%.

According to Tony Fernandes, Capital A has seen an ‌impact from the Middle East conflict on its businesses, which include aircraft maintenance, freight and logistics, food catering and branding services. However, AirAsia would work to keep its fares low, while desisting from the practice of cancelling flights amid the ongoing conflict. The budget carrier would also provide updates on its operations in the first week of April.

Capital A is also aiming to list its branding unit, AirAsia Next, in the United States by the end of 2026, reviving a plan that was called off two years ago.

Tony Fernandes also stated that the listing plans for Capital A and AirAsia Next were dependent on the group’s exit from PN17 classification, a tag given by Malaysia’s stock exchange to financially distressed companies.

Capital A has been classified as PN17 since 2022, after incurring massive losses due to COVID-19 pandemic-related disruptions.

“We just need to submit our audited accounts (to the stock exchange). I don’t want to jump the gun, but that’s the last thing we have (to do),” Tony Fernandes concluded.

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Asia Aviation owns a 51 percent stake in Thai AirAsia X. After the restructuring, Asia Aviation will hold 40.7 percent of the shares. Bijleveld will own 18 percent of the shares.

Bijleveld further said that the carrier had to switch its wide-body Airbus A330 jets to cargo service to stem financial losses. AirAsia X had 11 aircraft in its fleet, however, now it is reduced to seven.

“Border closures should not be an option to prevent the spread of the Omicron variant as the national economy and cash-strapped tourism sector, in particular, cannot afford to survive another lockdown,” he told the media.

Recently, the carrier received shareholder approval to raise $415 million through a mix of shares to be issued to new and existing investors as well as convertible bonds.

Last month, Thai AirAsia X announced its decision to further reduce its workforce and also extend furloughs despite the country’s reopening on November 1st.

In this regard Tassapon Bijleveld told the media, “Even though we’ve negotiated with suppliers and banks to help offload aircraft leasing costs, and we may get additional liquidity after restructuring this month, our balance sheet cannot be strong enough if those expenses still run. We have to permanently cut the fleet for at least two years or until international and domestic flights fully recover.”

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It is reported that the change in ownership is unlikely to affect the AirAsia India brand but could see the airline separate from AirAsia’s operations.

In October,  AirAsia X proposed restructuring its debt in order to survive the Covid-19 crisis. The carrier has proposed a restructuring of $15.3 billion of its debt and reducing its share capital by 90 percent. The proposed restructuring by AirAsia X will result in the carrier making structural changes to get out of the current crisis, including resizing its fleet and letting go of some of its employees.

AirAsia X said that it is facing liquidity constraints and with no return to normalcy insight, imminent default of contractual commitments will precipitate a potential liquidation.

In September, it was reported that AirAsia is planning to raise around $602 million by the end of the year in order to survive the Covid-19 crisis. The carrier was also reviewing its business in Japan, Reuters reported. According to an AirAsia spokesperson, the carrier would borrow its money from banks as well as from investors. AirAsia was also in talks with local and foreign investors including private equity firms, strategic partners and conglomerates, she confirmed.

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The proposed restructuring by AirAsia X will result in the carrier making structural changes to get out of the current crisis, including resizing its fleet and letting go of some of its employees.

AirAsia X said that it is facing liquidity constraints and with no return to normalcy in sight, imminent default of contractual commitments will precipitate a potential liquidation.

It is reported that AirAsia X has appointed board member Dato’ Lim Kian Onn, who is also a chartered accountant and former investment banker, to lead the airline restructuring.

MIDF Research said in a client note, “AAX’s creditors could potentially come to an agreement on the terms but they would have to be content with recovering a minute fraction of their capital.”

Last month, media reports said that AirAsia is planning to raise around $602 million by the end of the year in order to survive the Covid-19 crisis. The carrier is also reviewing its business in Japan, Reuters reported.

According to an AirAsia spokesperson, the carrier might borrow its money from the bank as well as from investors. The carrier is in talks with local and foreign investors including private equity firms, strategic partners and conglomerates, she confirmed.

AirAsia Group posted net losses of around RM803.85 million during the first three months of this year due to the ongoing coronavirus pandemic.

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“We must also look at the total picture whether it can meet the challenges such the changes in oil prices, the various taxes in Europe airports and so on.

“For example, the planes that were flying to London and Paris previously were not the right plane. The cost factor was the one that literally killed us from the market,” she told the Star.

The new airplanes would allow the company to give better returns to its shareholders. However, that would be decided by the board of directors based on the management’s proposal once the aircraft is in operation. Keeping in mind AirAsia X’s market expansion, “we have to be realistic in making our decisions for the long-term,” she added.

According to AirAsia X Group Chief Executive Nadda Buranasiri, the delivered A330neo aircraft will be launched in gradual phases. “We expect that Airbus would probably be able to provide us with six aircraft a year,” he said.

The first aircraft would be launched next month and the second batch is expected to arrive in August. The aircraft will be based in Don Mueang International Airport in Bangkok.

But the company has not decided on the flying routes for the new fleet. They are still exploring markets to understand the demand and how it can be used to their advantage. “We are working it out to ensure that it will be profitable to us, while at the same time, make our shareholders and passengers happy,” he concluded.

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