Malaysia-based Capital A Berhad announced Monday that shareholders have voted in favor of the proposed disposal of the group’s aviation business to AirAsia X (AAX) at an extraordinary general meeting (EGM).

This approval marks a pivotal milestone, enabling Capital A to focus on the four strategic pillars that will drive its transformation into a future-proofed tech-driven aviation services company via Capital A Aviation Services (CAPAS), MOVE Digital, Teleport (Logistics), and the Brand AA company, Capital A said in a statement.

“This is a watershed moment for Capital A and the AirAsia group of airlines, building on the tremendous value created over the past 23 years,

“With shareholder approval to divest the aviation business, we are unlocking a bright new future by delineating our pure-play aviation business from aviation support services,” said Tony Fernandes, Chief Executive Officer of Capital A.

According to him, this clarity will benefit both shareholders and customers, allowing them to redefine the future of travel in the region.

He highlighted that Capital A’s broader strategy is aimed at developing technology-driven aviation services and digital businesses that will support the significant anticipated growth in travel demand.

He noted separating the aviation and non-aviation businesses allows them to sharpen their focus on maturing the high-growth aviation support services and digital businesses they have built to support the aviation business.

“Upon securing AAX shareholders approval at the EGM on October 16, the aviation businesses will be able to consolidate to form a game-changing AirAsia Group, with synergies between short-haul and long-haul operations driving greater efficiency, profitability, and shareholder returns,” he added.

Fernandes also emphasized that Capital A is well-positioned for accelerated growth.

“From digital travel to logistics and brand management, we are building a robust, tech-powered aviation services ecosystem,

“Today’s approval from our shareholders also paves the way for Capital A to move to a clean balance sheet that will provide the clarity and flexibility to finalize our regularization plan and exit PN17 status soon,” he said.

This restructuring aligns with the group’s strategy to evolve into an agile, technology-focused organisation, built around four key pillars:

Aviation Services (CAPAS): Delivering value through maintenance, repair, and overhaul (MRO) solutions via Asia Digital Engineering (ADE) and expanding Santan’s in-flight catering and retail offerings.

MOVE Digital: Leading innovation in travel and fintech through AirAsia MOVE and BigPay.

Teleport: Expanding logistics solutions across ASEAN with enhanced cargo operations and cross-border services.

Brand AA: Managing the globally recognised AirAsia brand through strategic licensing and partnerships.

“We are incredibly grateful for the unwavering support of our shareholders. The vote reflects a shared belief in the long-term value Capital A can create across both aviation and non-aviation sectors,” Fernandes added.

Following the milestone approval, Capital A will seek a court order to distribute the consideration shares to shareholders through a planned reduction and repayment of the company’s issued share capital.

It will also be securing approval from the holders of Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) at their meeting on October 14, marking another critical milestone in Capital A’s journey.

These critical steps will enable Capital A to achieve a clean balance sheet and focus on submitting its regularization plan before the year end, with the aim of exiting Practice Note 17 (PN17) status, Capital A noted.

AirAsia X issues shareholders’ circular on proposed acquisitions of Capital A’s aviation businesses