Malaysian aviation group AirAsia X (AAX) announced Monday that it has entered into a non-binding letter of acceptance with Capital A for the proposed acquisitions of its aviation businesses, namely AirAsia Berhad and AirAsia Aviation Group Limited.

AAX said in a statement that the strategic move positions AAX to become the overarching regional aviation provider for all short and medium-haul routes under the AirAsia brand name.

It said this groundbreaking acquisition is expected to provide unparalleled advantages, including a strengthened market position, increased operational efficiency, and ultimately driving cost savings and enhanced financial performance.

It is noted that the decision to combine the airline businesses through these acquisitions leverages AAX’s robust recovery trajectory after its upliftment from the Practice Note 17 (PN17) status in November 2023.

“These strategic acquisitions serve as pivotal milestones in AAX’s post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning,

“The consolidation under the AirAsia brand as a one-listed entity reflects our commitment to capitalize on our regained strength and market confidence to deliver a unified and unparalleled travel experience for our guests and significant value for our shareholders,” AirAsia X Chairman Fam Lee Ee said.

“Leveraging the strengths of all airlines under the AirAsia brand, we are poised to create a pure-play entity that propels us forward,

“The synergy created through these strategic acquisitions represents more than just a financial consolidation; it symbolizes our role as a trailblazer in shaping the future of the aviation industry. The future holds immense potential, and we are excited to embark on this transformative journey,” he added.

According to the statement, the detailed announcement on the proposed acquisitions, including their effects on various financial metrics is expected to be announced in due course, subject to the definitive share sale and purchase agreement and its completion.

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