Capital A has completed the disposal of its aviation business to AirAsia X (D7, Kuala Lumpur International), finalising a restructuring designed to consolidate the group's airline operations under one umbrella. It also reduced its direct stake in the long-haul operator by 3.8 points as part of corporate adjustments.

According to a Bursa Malaysia filing, Capital A's disposal of AirAsia Aviation Group and AirAsia concluded on January 16. The transaction was settled via the issuance of approximately 2.3 billion AirAsia X shares to Capital A and its shareholders, along with AirAsia X assuming MYR3.8 billion Malaysian ringgit (USD937.2 million) in debt owed by Capital A to AirAsia Berhad.

AirAsia Aviation Group is the vehicle for all non-Malaysian joint ventures using the AirAsia brand.

Concurrently, AirAsia X completed a private placement on January 16, issuing 606 million new shares to raise MYR1 billion (USD246.6 million). Both the consideration shares and placement shares were listed on January 19.

Separately, Capital A disclosed in a January 14 filing that it sold 17 million AirAsia X shares that day for MYR28.1 million (USD6.9 million). The sale, executed at MYR1.65 (USD0.4) per share, reduced Capital A's direct interest from 12.77% to 8.96%. The group stated the reduction was necessary to ensure that it and persons acting in concert keep their collective shareholding below the 33% mandatory takeover threshold. While Capital A remains a minority shareholder in AirAsia X, its main corporate focus will henceforth be on non-aviation businesses.

Capital A CEO Tony Fernandes termed the completion "the most challenging chapter" in the firm's history, noting it allows the company to focus on exiting its Practice Note 17 financial distress status.

While the consolidation is complete, AirAsia X recently noted that it is still exploring a corporate rebranding to AirAsia Group, but has not yet submitted formal applications