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.

The post Capital A names Effendy Shahul Hamid as its Deputy CEO appeared first on International Finance.

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.”

The post Thai AirAsia X is looking for investors for major restructuring appeared first on International Finance.

iSend Logistics offers cost-efficient, fast and reliable courier delivery services in Malaysia. Currently, it has warehouses in Klang Valley, Penang and Johor.
The pandemic has resulted in a growth in e-commerce and has fast-tracked digital adoption in many instances. With Malaysians buying more and more products and services online, it is also creating an increasing demand for logistical services.

Zamri Rahman, iSend Logistics General Manager told the media, “This strategic partnership between iSend and Ikobana will provide an opportunity for us to demonstrate our position in Malaysia’s first and last-mile delivery market. To keep up with the e-commerce boom in Malaysia, iSend will be focusing on partnerships, ramping up investment into technology and strengthening operations. We’ve identified gaps in consumer demand and will be offering exciting and newly improved products and services soon.”

“We plan in the next five years to expand across Malaysia by having at least 99 satellite stations with the support of seven hubs in each region. We currently have six distribution centres and 60 satellite stations in Malaysia,” he added.

Last month, it was reported that Malaysian airline AirAsia’s logistics arm Teleport signed an agreement to buy out DeliverEat, a Penang-based online food delivery platform, in a deal worth $9.8 million. Previously, AirAsia acquired Gojek’s operation in Thailand.

The post Malaysia’s iSend Logistics expands last-mile delivery services across country appeared first on International Finance.

Karen Chan told the media, “We anticipate in five years time, basically by the end of 2024, that 50 percent of revenue would be coming from non-flight related non-aviation-related revenue.”

“Not all the flights are always full, and the load factor will not be 100 percent. So the unsold infantry, and because they are so perishable, even as an 85 percent load factor for an Airbus A320, I still have about 20 to 25 seats unsold. I will now be able to bundle that unsold inventory for one ringgit or 25 cents with the hotel’s direct inventory. And I will be able to go into the market with a best buys guarantee. We can go and expand into where other airlines are just not able to do so. We actually want to go and be seen as basically a lifestyle partner.”

Founder Tony Fernandes revealed last year that the airline is working on a new super app that will compete with the likes of Southeast Asian giants such as Grab and Gojek. The aviation industry has been hit hard by the coronavirus pandemic and through the super app, AirAsia is looking for a new way to generate income. The super app which AirAsia is working on will be an all-in-one app for food delivery, shopping, payments, entertainment and travel.

The post Around 50% of AirAsia’s revenue to come from non-aviation sources: CEO appeared first on International Finance.

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.

The post AirAsia’s stake in Indian subsidiary to reduce to 13% appeared first on International Finance.

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.

The post AirAsia X proposes debt restructuring to survive Covid-19 crisis appeared first on International Finance.

The aviation industry has been hit hard by the coronavirus pandemic and through the super app, AirAsia is looking for a new way to generate income.

The super app which AirAsia is working on will be an all-in-one app for food delivery, shopping, payments, entertainment and travel.

In an interview with BBC, Fernandes said, “The downturn was a blessing in disguise in some ways as it allowed us to focus more on it. Running an airline takes up a lot of our time but we have been given the opportunity and time to focus on our digital business.”

“AirAsia has always been a digital company. We were one of the first airlines to sell online. It’s in our bloodstream. I know a super app sounds like a lofty target but Grab and Gojek also started out small as food or mobility apps. Plus people also questioned me the same way when I said I wanted to start AirAsia.”

Reportedly, AirAsia has let go around 30 percent of its employee to deal with the Covid-19 pandemic.

AirAsia Group recently reported that its revenue plummeted 98 percent year-on-year.
The second quarter results of AirAsia Group, identified as the Consolidated Group (Malaysia, Philippines and Indonesia) reported revenue of RM119 million, which is 96 percent less when compared to the RM2.9 billion recorded in the second quarter of 2019.

The post AirAsia working on new super app to rival Grab, Gojek appeared first on International Finance.

In the first quarter of the previous year, the carrier made a profit of around RM21.31 million.

Due to the Covid-19 crisis,  AirAsia’s revenue fell to RM2.31 billion from RM2.73 billion previously.

In a stock exchange filing, AirAsia said, “Fears of the spread of the virus, as well as travel restrictions and border controls announced by the government of different countries, led to a collapsed in demand for air travel in the month of February and March 2020.”

According to reports in the media, AirAsia has applied for a loan of around RM3 billion to help the carrier weather the Covid-19 crisis.

A research report by CGS-CIMB Equities Research says, “We estimate AirAsia needs RM3 billion in new funding to maintain a healthy cash position.”

Reportedly, the group is holding talks with multiple banks, however, around 80 percent of the loans may be guaranteed by Danajamin Nasional Berhad, and may issue new equity or convertible securities to strategic shareholders while not ruling out a rights issue.

AirAsia Group expects its 2020 capacity to be just 45-60 percent of last year’s levels due to the coronavirus outbreak and to fill 70-75 percent of seats this year compared with the usual 85 percent.

The carrier posted the forecast on its website.

The post AirAsia posts Q12020 net losses of RM803.85 mn due to Covid-19 appeared first on International Finance.

Five prospective buyers are in the fray, said Malaysian Prime Minister Mahathir Mohammed, although he did not disclose their identities.

According to sources, among those are Air France-KLM that is expected to bid for a 49 percent stake while Japan Airlines is eyeing a stake of 25 percent.

Apart from these prospective foreign investors, there are also indigenous airline carriers that aspire to purchase a stake in Malaysia’s national airline. One is AirAsia Group and the other is Malindo Air, which is a subsidiary of Indonesia’s Lion Air in Malaysia.

Although the proposals from overseas airline carriers are indeed pretty lucrative, the government of Malaysia has discovered that the sovereign wealth fund that runs Malaysia Airlines prefers a transaction with AirAsia.

The source went on to say that the proposals from foreign investors are more all-inclusive as they seek to leverage the geographical advantage that Malaysia Airlines offers their services.

Following the double setbacks it suffered in 2014 – the strange vanishing of the airplane MH370 and the airplane MH17 being shot down over eastern Ukraine, Malaysia Airlines has been struggling to stay afloat.

And ever since, the Malaysian government is endeavouring to get a strategic alliance for its national airline. The same year, sovereign wealth fund Khazanah Nasional Bhd acquired the airline by paying RM1.4 billion ($345 million) for the 30 percent of shares which did not belong to it.

The post Investors reportedly show interest to buy beleaguered Malaysia Airlines appeared first on International Finance.

AirAsia’s market share in its domestic market in Malaysia has increased by 3 percent year-on-year to reach 60 percent.

With regard to the increase in market share, AirAsia Group’s president Bo Lingam told the media, “This was in spite of intense competition in the domestic market, as we saw irrational fare dumping as well as baggage unbundling by competitors. We nonetheless expect to see a reversal of this behaviour in the fourth quarter of 2019, with our average fares seen higher year-on-year in the upcoming quarter.”

He also added, “We are also determined to bring all Asean AOCs (Air Operator Certificate) into profitability this year, with particular focus on reshaping AirAsia Thailand, by realigning routes and enhancing efficiency while additionally exploring new routes to India as well as Cambodia, Laos, Myanmar, and Vietnam markets.”

Reportedly, the loss in the third quarter is attributed to hefty accounting charges on its aircraft and fuel hedge contracts, as well as foreign exchange volatility.

However, revenue for the quarter increased by 17percent to RM3.07 billion from RM2.61 billion during the same period last year.

According to Tan Sri Tony Fernandes, chief executive officer at AirAsia, the carrier is repositioning its business by adapting new accounting treatment and restructuring the ownership and aircraft leasing process.

Interestingly, the carrier’s income for non-ticket sources increased by 26 percent to RM686milion year-on-year.

Recently, the carrier took the delivery of its first Airbus A321neo in Germany. It has also collaborated with Kiwi.com to sell flight tickets of other carriers on its website.

The post AirAsia expands market share despite loss appeared first on International Finance.