By Ashley Erika O. Jose, Reporter
LOW-COST carrier AirAsia Philippines expects improved operations and route expansion following the completion of AirAsia X Berhad’s acquisition of AirAsia Berhad and AirAsia Aviation Group Ltd. from Capital A.
“This integration is expected to improve connectivity, more efficient operations, and the possibility to introduce new routes or better schedules depending on demand, and hopefully, additional aircraft as the Group is currently ordering more units to scale our reach,” AirAsia Philippines President and Chief Executive Officer Suresh Bangah said in a Viber message to BusinessWorld on Monday.
The transaction brings all AirAsia-branded airlines under a single platform, the AirAsia Group, while Capital A will focus on non-aviation businesses.
“This milestone marks a defining moment for the Group. With the consolidation now complete, we have established a stronger, more streamlined aviation platform that is well-positioned for sustainable growth, operational excellence and long-term value creation for all stakeholders. The Board is confident that this integration will unlock significant synergies and reinforce AirAsia Group’s leadership in the region,” AirAsia X Chairman Dato’ Fam Lee Ee said in a media release.
AirAsia X said the acquisition was completed through the allotment and issuance of 2.31 billion new ordinary shares to Capital A and its entitled shareholders, which also included the assumption of RM3.8 billion previously owed by Capital A to AirAsia Berhad.
Concurrently, AirAsia X issued 606.06 million new ordinary shares to independent third-party investors via a private placement.
The consolidation is expected to improve fleet utilization, integrate network planning, and enhance financial performance.
“The Group is also finalizing additional aircraft orders to scale our reach, connecting the world to Asean and Asean to the world. This expansion is the engine behind our low-cost network model ambition, supported by a relentless focus on maintaining a highly competitive cost base,” the group said.
Mr. Bangah said AirAsia Philippines will benefit from the stronger group platform, enabling better network alignment, fleet optimization, and long-term growth in the Philippine market.
To recall, AirAsia announced in 2025 a fleet expansion plan of 150 additional aircraft, with up to 20 expected to be delivered to its Philippine unit over the next five years.
