Malaysia’s Capital A Berhad mentioned on Monday it intends to promote its aviation enterprise to long-haul unit AirAsia X Bhd, with a purpose of consolidating each its lengthy and short-haul operations below a single AirAsia model.

The proposed deal, which is topic to a remaining settlement being signed and to approvals from shareholders and courts, includes the sale of AirAsia Berhad and AirAsia Aviation Group Ltd, which incorporates AirAsia models in Thailand, Indonesia, Philippines, and Cambodia, Group Chief Govt Tony Fernandes advised reporters with out disclosing any deal worth.

Full particulars of the deal could be introduced “within the subsequent two weeks”, he advised reporters at AirAsia’s 2024 outlook briefing.

“Ultimately AirAsia X and AirAsia shall be merged into one airline… my dream is for it to be one ASEAN airline,” Fernandes mentioned, referring to the 10-member Affiliation of Southeast Asian Nations.

AirAsia was based in 2001 with two plane and has since turn into certainly one of Asia’s largest price range airline operator with a fleet of some 200 planes serving markets together with Southeast Asia and China.

Each Capital A and AirAsia X have been laborious hit by pandemic journey restrictions and categorized by Malaysia’s inventory change as PN17, or financially distressed. Such corporations could also be de-listed from the change in the event that they fail to stabilize their funds inside a set timeframe.

AirAsia X was eliminated from the classification in November, after enterprise measures to enhance its monetary place.

Fernandes mentioned the group’s airways will possible return to full pre-pandemic capability by the tip of the primary quarter. He mentioned they’ve 400 planes on order and Airbus will begin delivering new A321 plane by the second quarter of 2025.

It additionally hopes so as to add routes to Europe, South America and Africa by the tip of this yr.

Fernandes, who advised the briefing that he intends to retire inside 5 years, mentioned the airline sale would assist Capital A elevate funds and deal with its non-aviation enterprise, which embrace funds agency BigPay, logistics arm Teleport, and on-line journey company airasia MOVE.

“We’re assured that by separating the aviation enterprise from Capital A, the non-aviation companies inside the group, which we really feel are presently undervalued by the market, may also be acknowledged for his or her intrinsic worth and potential,” he mentioned in a separate assertion.

Capital A plans to current a PN17 regularization plan by June 30, after the completion of the aviation disposal, he mentioned.