With the regrouping under a single entity called AirAsia Group, the Kuala Lumpur-based airline is set to raise its profile in the international arena. AirAsia to the rank of the world's leading low-cost carrier, with a presence on several continents. At the same time, the group will be the first in the world to operate only single-aisle aircraft on short and medium-haul routes.
The Group has confirmed that it will only have one aircraft model, which will be available in several versions: the Airbus A321, including the long-haul A321XLR. This change of strategy will be accompanied by the withdrawal of the Airbus A330s currently in the fleet and the conversion of orders for future A330s to the A321XLR. The Airbus A330s will be phased out over the next five to six years.
According to Tony Fernandes, CEO of Capital A, " Our aim is to become the world's first low-cost airline group to operate entirely with single-aisle aircraft. This configuration will enable us to be more efficient and to grow faster in new markets. ".
Major global ambitions
The restructuring will give rise to two separate entities:
AirAsia Groupwhich will be responsible for overseeing all the flight operations of the entities registered in Cambodia, Indonesia, Malaysia, the Philippines and Thailand. The two long-haul entities AirAsia X and Thai AirAsia X will disappear. According to Tony Fernandes, the group is now actively seeking to establish itself in Vietnam, despite two failed attempts in the past to operate an airline. However, it has no plans to set up in Singapore.
Capital A, which will bring together non-airline activities including logistics, catering, digital platforms and engineering services.
Each company will retain its own legal status - due to the legal constraints of each Asian country. But management and strategy will be shared.
By 2035, AirAsia aims to have a fleet of more than 600 aircraft, compared with 255 today, and plans to double its annual traffic to around 155 million passengers to 175 destinations, compared with 143 today.
Bahrain enters the fray
At the same time, Capital A has signed a Letter of Intent (LOI) with Bahrain's Ministry of Transport and Telecommunications to explore the creation of a regional hub. The future base, strategically located between South East Asia, Europe and Africa, would enable AirAsia to link its Asian bases to the Middle East and Mediterranean markets.
The partnership provides for in-depth cooperation in air operations, cargo logistics, maintenance, training and an aviation training centre. According to reports in local Bahraini newspapers, the airline is seeking to operate a network of 25 daily flights by 2030, connecting cities in the Middle East, Central Asia, Africa and Europe. The company intends to obtain an operating licence.
