KUALA LUMPUR:: Capital A Bhd chief executive officer Tan Sri Tony Fernandes described the disposal of AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) as "one of the most emotional moments" of his career.
The move, which marks the end of Capital A's six-year restructuring journey, also closes what Fernandes called "the most challenging chapter" in the company's history.
"This represents the culmination of one of the most complex and rigorous restructuring exercises undertaken by an aviation group since Covid brought aviation to a standstill six years ago.
"Giving up was not an option, and we chose to rebuild the right way, step by step, approval by approval, and never taking 'no' for an answer. Now, the aviation disposal is finally complete.
"To my Allstars, shareholders, partners and regulators – this is not just an end of a restructuring process but a journey of proving our resilience, grit and determination to get through the toughest times and come out stronger. I could not be more proud of what we have achieved," he said.
The AAAGL disposal to AirAsia X Bhd (AAX) was finalised on Jan 16, 2026, with consideration settled via the issuance of 2.31 billion AAX shares to Capital A and its entitled shareholders. The AAB disposal was completed the same day, with AAX assuming RM3.8 billion in debt owed by Capital A to AAB.
On the same day, AAX also issued 606.06 million placement shares under its private placement exercise. These transactions consolidate all AirAsia-branded airlines under a single platform, enabling Capital A to pivot toward its non-aviation portfolio. The consideration and placement shares are scheduled to be listed on Bursa Malaysia's Main Market on Jan 19, 2026.
Fernandes said the consolidation allows AirAsia to operate as a single airline group, improving connectivity and value for guests. Meanwhile, Capital A's ecosystem, comprising ADE, Teleport, AirAsia MOVE, AirAsia Next, and Santan, will sharpen strategic focus, accelerate growth, and ensure long-term sustainability for shareholders.
Teh Mun Hui, group chief financial officer of Capital A, said, "Over six years and multiple jurisdictions, we balanced speed with regulatory discipline. We engineered a clean transfer: consideration in AAX shares and RM3.8 billion of liabilities assumed by AAX, protecting cash, right-sizing the balance sheet and creating two focused entities."
He added that distributions to entitled shareholders will coincide with the listing, with the company promptly seeking to lift the PN17 label.
"Capital A, with disciplined capital and strong governance of our five businesses (ADE, Teleport, AirAsia MOVE, AirAsia Next and Santan), is built to lower costs, grow revenue and deliver durable returns."
Capital A will provide further updates as the remaining procedural steps are completed and on the progress of the PN17 uplift application.