Malaysia-based low cost carrier AirAsia X (AAX) announced that its shareholders expressed strong support for the proposed acquisition of Capital A’s entire equity interest in the aviation business within AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) for MYR 6.8 billion ($1.58 billion), during the extraordinary general meeting (EGM) held on Wednesday.

AAX said in a statement on Wednesday that at the EGM, 99.08 percent of shareholders voted in favor of the resolution, signaling strong support for AAX’s vision to capitalize on new market opportunities, strengthen operational synergies, and expand its service offerings.

This pivotal decision clears the path for AAX’s transformative acquisition which is expected to be completed by the end of the year as an enlarged aviation group, subject to final court and regulatory approvals.

Additionally, shareholders voted in favor of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of MYR 1 billion ($230 million), proposed share capital reduction and proposed granting of subscription shares.

“The unanimous approval from our shareholders marks a pivotal moment for AAX as we take a bold step forward in shaping the future of low-cost travel,” said Fam Lee Ee, Chairman of AAX.

According to him, this acquisition will give the firm access to over 200 existing aircraft and 361 future aircraft order books from Capital A’s aviation portfolio, combining both narrow-body and wide-body aircraft into a unified group, enabling them to expand their reach across long, medium, and short-haul segments.

“With this enhanced fleet, we can operate more efficiently, offer better service to our guests, and strengthen our competitive position in key markets,” he noted.

He also said the firm’s focus now is on sustainable expansion and innovation, driving greater value for their guests and shareholders.

“As we move into this exciting new chapter, the enlarged aviation group is poised to capture even more growth opportunities and build a more sustainable business model for the decades ahead,” he added.

Benyamin Ismail, Chief Executive Officer of AirAsia X, this acquisition positions them on the brink of a transformative shift at AirAsia, uniting medium and short-haul operations into a powerful low-cost carrier network that will bring the world to Asean and Asean to the world.

“We will prioritize sustainable expansion, operational excellence, and innovation, ensuring that AirAsia continues to lead in the low-cost market,

“With over 23 years of experience in building market-leading airlines and multi-hub operations, we are not only better positioned to seize market opportunities but also to strengthen our competitive edge and build a future-ready airline that places our customers at the heart of everything we do,” he noted.

According to the statement, the proposed acquisition represents AAX’s long-term strategy to emerge stronger and more competitive in the global aviation industry.

The recent launches of AAX routes to Almaty and Nairobi signal exciting new opportunities, with further expansion plans into Asia and Africa.

The consolidation will significantly enhance network capacity and strengthen connectivity, offering guests a wider array of destinations and travel options for leisure and business, said the statement.

Shareholders greenlight Capital A’s aviation business disposal to AirAsia X