The CEO of Capital A has told Reuters he hopes that bringing all his airlines under one brand, AirAsia X, will create a equity windfall of around USD400 million.

Capital A announced in January that AirAsia X Berhad (AAX), dba AirAsia X, would acquire 100% stakes in AirAsia (AK, Kuala Lumpur International) and AirAsia Aviation Group (AAAGL). The latter entity operates Capital A's short-haul airlines based outside Malaysia, AirAsia Philippines, Indonesia AirAsia, Thai AirAsia, and AirAsia Cambodia.

The agreement would see all the AirAsia short-haul brands merge into the AirAsia X brand, which, instead of focusing exclusively on medium and long-haul operations, would provide flights across all sector lengths.

Tony Fernandes told the news agency that Capital A was looking to raise equity as a result of the merger. This is in addition to USD200 million it hopes to raise through a bond issue next month.

"We hope the acquisition by AirAsia X of Capital A aviation assets will be done by June and July," he said. Fernandes will retain significant stakes in the AirAsia and AirAsia X airlines via his other investment vehicles. He maintains that the merger will allow Capital A to concentrate on its non-aviation brands, which include logistics and delivery services supported by consumer-friendly digital technologies.