The AirAsia brand is looking to expand beyond Southeast Asia with its parent investment holding company, Capital A, announcing it is in the early stages of a USD1 billion business combination merger with Aetherium Acquisition Corp, a Special Purpose Acquisition Company (SPAC) listed on the Nasdaq stock exchange in New York.

This merger would create Capital A International, a new stand-alone publicly traded brand management, investment and strategic development company in the United States that would leverage the AirAsia brand to focus on investments in aviation, travel, hospitality, and digital technologies. Capital A International will hold 100% equity interest in AirAsia Brand and Leasing, generating revenue from brand royalties and aircraft leasing while also engaging in tactical acquisitions, incubation, and partnerships to provide platforms for entrepreneurs, according to a statement issued on November 1, 2023.

At this stage, a letter of intent has been signed between Capital A Berhad and Aetherium Acquisition Corp. The indicative equity value for the merger is USD1 billion based on the valuation of the AirAsia brand.

Capital A Chief Executive Officer Tony Fernandes said: "This is a coming-of-age moment for Capital A, which has morphed from AirAsia into a low-cost, value-driven aviation and travel services group in five entities, the first of which that's coming to the public market would be Capital A International. We are taking the first step to venture out of our home ground, which is ASEAN, and exploring listing on the pinnacle of markets in terms of capital raising. We are confident that the exposure to the US financial markets and Nasdaq listing would help us accelerate the delivery of our strategy as we improve access to capital, broaden our shareholder base, and meaningfully raise our profile globally," he added.

Aetherium Acquisition Corp Chief Executive Officer Jonathan Chan said: "The new entity will present investors with the opportunity to tap into the growth of the ASEAN region with a high-quality, profitable asset and exceptional management team. We look forward to finalising the business combination agreement in the weeks to come."

The merger is subject to regulatory approvals and will be detailed in a definitive agreement in the future.