AirAsia X’s acquisition of sister carrier AirAsia has moved closer to completion following a key vote of approval from AirAsia X shareholders. At an extraordinary general meeting on 16 October, 99.08% of shareholders voted in favor of the acquisition, marking an important milestone in the deal. This shareholder approval follows a similar move from the parent company, Capital A, whose shareholders had recently backed the disposal of its aviation assets to AirAsia X.
The acquisition is expected to be completed by the end of the year, subject to final court and regulatory approvals. The integration of AirAsia and AirAsia X will create an enlarged aviation group, strengthening their combined presence in the low-cost airline market.
AirAsia X, known for its medium-haul, low-cost operations, views the acquisition as transformative. The deal is expected to streamline operations, create synergies, and improve cost efficiencies across the group. The expanded aviation group will be better positioned to serve a broader network of routes, enhancing its competitive edge in the Asian market.
This acquisition aligns with AirAsia X’s growth strategy as it looks to recover from the challenges posed by the pandemic and adapt to the evolving dynamics of the aviation industry. By integrating AirAsia’s short-haul expertise with AirAsia X’s medium-haul operations, the combined entity aims to capitalize on the growing demand for affordable air travel across the region.
As the deal moves towards completion, AirAsia X anticipates that the acquisition will provide a stronger platform for future growth, allowing the group to optimize its fleet, expand its route network, and enhance overall customer experience. The enlarged group will also benefit from better economies of scale, which is expected to improve profitability and operational resilience in the long run.
With final court and regulatory approvals still pending, AirAsia X remains optimistic that the deal will close by the end of 2024, marking a significant moment in the consolidation of the two airlines and paving the way for a more robust and competitive aviation group in the region.
