No merger but a separate entity to be formed, says Capital A

Capital A Group chief executive officer Tan Sri Tony Fernandes. - REUTERS/Lim Huey Teng

PETALING JAYA: 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 or 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.