AirAsia X (D7, Kuala Lumpur International) is to be renamed as AirAsia effective January 19, 2026, as parent Capital A enters the final stages of its corporate restructuring and exit from Practice Note 17 (PN17) status.

According to a January 13 statement by CEO Tony Fernandes, the renaming will happen concurrently with the consolidation of the group's long-haul and short-haul aviation businesses into a single entity. The restructuring involves the disposal of Capital A's aviation assets to AirAsia X in a deal valued at MYR6.8 billion Malaysian ringgit (USD1.7 billion).

"AirAsia will be one airline group and one brand. We will consolidate AirAsia X and AirAsia as one airline group with global ambitions," Fernandes said. He added that the group is finalising a new aircraft order intended to reduce costs and optimise fleet, although no further details were disclosed.

The restructuring timeline aims for the distribution of AirAsia X shares to Capital A shareholders following the completion of a MYR1 billion (USD246.5 million) private placement. Capital A expects share allocation by January 16, with the enlarged share base to list on Bursa Malaysia on January 19.

Simultaneously, Capital A intends to submit its application for the lifting of the PN17 status - a classification for financially distressed companies - on January 19, with a final court hearing scheduled for January 21. Following the disposal of the aviation division, Capital A will operate as a holding company for non-aviation businesses, including MRO, logistics, and digital services.

Fernandes also outlined strategic goals for the consolidated airline, targeting 30% EBITAR margins and stating plans to build a "low-cost version of Emirates (EK, Dubai International) and Qatar Airways (QR, Doha Hamad International)" utilising a hub in Bahrain International. He noted that dividends would be targeted once pandemic-era debt is reduced.

Capital A plans to host an investor day after the 2025 fourth quarter results are finalised to detail the post-restructuring strategy.