No merger but a separate entity to be formed - Capital A clarifies

KUALA LUMPUR: Capital A Bhd has clarified that there is no plan for a merger between AirAsia Bhd and AirAsia X Bhd (AAX), but a separate publicly-quoted aviation group will be formed under the proposed Practice Note 17 (PN17) exit strategy.

"The company wishes to clarify that the proposed plan is not a merger of AirAsia and AAX, but a potential disposal of Capital A’s aviation assets to AAX, in order to form a separate publicly-quoted aviation group comprising six airlines -- four short-haul Asean airlines and two medium-haul airlines, namely AirAsia, Thai AirAsia, AirAsia Indonesia, AirAsia Philippines, AAX and Thai AirAsia X,” Capital A said in a filing with Bursa Malaysia today.