KUALA LUMPUR: Capital A Bhd
will exit Practice Note 17 (PN17) status on May 20, marking the completion of a six-year restructuring exercise that included the disposal of its aviation business and a major capital reduction aimed at restoring its financial position.
In a filing and statement, the group said Bursa Malaysia Securities Bhd had approved the upliftment of its PN17 classification effective 9 AM Wednesday, following the completion of its regularisation plan.
Capital A had been classified as a PN17 company in January 2022 after its shareholders’ equity fell below the threshold required under Bursa Malaysia’s listing rules amid the severe impact of the Covid-19 lockdowns on the aviation sector.
The company said the regularisation plan was completed in January 2026 through several key corporate exercises, including the disposal of its aviation businesses to AirAsia X Bhd (AAX), the distribution and listing of AAX shares to entitled shareholders, and a High Court-approved capital reduction of about RM5.5bil.
According to Capital A, the restructuring restored the group’s shareholders’ funds to positive territory. The company also said its remaining non-aviation businesses had recorded five consecutive profitable quarters from the first quarter of 2025 to the first quarter of 2026, excluding contributions from the aviation segment.
Chief executive (CEO) Tan Sri Tony Fernandes described the upliftment as a significant milestone for the company after several years of restructuring and operational challenges.
“The past six years have been incredibly tough,” he said, adding that the group had sought to protect jobs while transforming itself into a more diversified business ecosystem.
Fernandes said Capital A’s non-aviation operations were less exposed to fuel price volatility compared with its previous airline-focused structure, adding that the company’s diversification strategy had strengthened its resilience against external pressures such as geopolitical uncertainty and supply chain disruptions.
He also thanked Bursa Malaysia, advisers and legal counsel involved in the restructuring process.
Deputy CEO Effendy Shahul Hamid said the group was entering a new phase focused on growing five core businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, AirAsia Next and Santan.
He said ADE, the group’s maintenance, repair and overhaul (MRO) business, was experiencing a record year, while logistics arm Teleport continued to expand its regional network. Both businesses had secured new funding to support expansion plans, he added.
Effendy also said AirAsia MOVE would continue integrating with airline partners to strengthen its travel and ancillary offerings, while AirAsia Next would focus on monetising the AirAsia brand through loyalty, artificial intelligence and data-driven initiatives.
Meanwhile, Santan, Capital A’s food and beverage unit, is looking to expand beyond inflight catering into a broader Asean grab-and-go food business.
Group chief financial officer Teh Mun Hui said the restructuring exercise involved multiple transactions, jurisdictions and regulatory approvals, describing it as one of the most significant corporate exercises undertaken by the company.
She said the completion of the restructuring gives Capital A a stronger balance sheet, clearer corporate structure and renewed focus on long-term growth.
Following the completion of the restructuring, all AirAsia airlines now operate under a consolidated airline platform, while Capital A will focus on its portfolio of non-aviation businesses.
These include ADE, Teleport, AirAsia MOVE, AirAsia Next and Santan, which the group said are intended to deliver sustainable value through its broader ecosystem strategy.
Capital A said it would continue updating the market on the operational progress of its businesses.
