Tony Fernandes, chief executive of Capital A Bhd, said two distinct companies would eventually be formed ‒ a unified AirAsia group for airlines, and Capital A for operating non-aero businesses, reports the Bangkok Post.
AirAsia X will be renamed AirAsia Group to operate seven airlines, focusing on operating narrow-body aircraft with multiple hubs in Southeast Asia.
Its upcoming fleet includes long-range A321XLRs, while the group is also planning to build new hubs in the Middle East and Europe.
He said all airlines would remain distinct legal entities, of which AirAsia airlines’s operation in Thailand will be merged.
Mr Fernandes said the group has cancelled the outstanding orders of wide-body Airbus A330s, and will retire all of this type of aircraft within the next five to six years.
To expand AirAsia further in this region, the group is in discussions to launch the AirAsia airline in Vietnam, but has no plans to enter Singapore at the moment, he said.
In 10 years, it aims to have over 600 aircraft in service, up from 255 aircraft this year, said Mr Fernandes.
This could allow the group to serve 155 million passengers, up from roughly 68.8mn, reaching 175 destinations, up from 143 destinations.
Meanwhile, Capital A will operate five companies, including ADE, an engineering company which has already set up its entity in Thailand and is now looking to build new hangars and line maintenance facilities in the country.
The other four are logistics operator Teleport, online travel platform MOVE, food & beverage business Santan, and brand licensing and IP business AirAsia Next.
Mr Fernandes said that prior to the pandemic, the group gained the majority of its revenue from airlines, but it has now transformed itself into a vast ecosystem.
This week, Capital A also signed a letter of intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to study the opportunity of establishing the country as a hub in the Middle East.
Mr Fernandes said this marks the beginning of a long-term partnership to build a crucial connection between Southeast Asia and one of the fastest-growing aviation regions in the world.
The LOI sets out a comprehensive framework for deeper aviation and economic cooperation between Capital A and Bahrain.
It outlines multi-faceted collaboration across future airline operations, cargo and logistics, maintenance capabilities and talent development.