Expansion Beyond Core Business, AirAsia Group Changes Name to Capital A Bhd

Expansion Beyond Core Business, AirAsia Group Changes Name to Capital A Bhd

AirAsia Group Bhd Malaysia changed its name to Capital A Bhd to reflect its growing business portfolio beyond its core airline business.

The airline business has been hit hard during the pandemic due to strict travel rules in Asia, leading the Malaysian stock exchange this month to classify the company as a financially distressed company despite raising funds to improve its balance sheet.

AirAsia Group Bhd Malaysia changed its name to Capital A Bhd to reflect its growing business portfolio beyond its core airline business.

The airline business has been hit hard during the pandemic due to strict travel rules in Asia, leading the Malaysian stock exchange this month to classify the company as a financially distressed company despite raising funds to improve its balance sheet.

The group proposed changing its name on January 3.

Capital A has invested heavily in its BigPay payments business, its Teleport logistics arm, and its mobile Super App for other sources of revenue, although they remained in a growth phase and were losing money in the quarter ended September 30, 2021.

“Over the past two years we’ve spent the downturn in aviation building a solid foundation for a viable and successful future that doesn’t depend on airfare alone,” Capital A Chief Executive Tony Fernandes said in a statement.

He added that the airline business will continue to maintain the AirAsia brand, which is already well-known in Asia.

Fernandes told reporters at a launch event in Kuala Lumpur that the airline, which has five affiliated airlines including long-haul carrier AirAsia X, plans to introduce two more to its home base. However, he declined to provide further details.

The group is also seeking to raise about 1 billion ringgit this year, as it continues to work to regulate its finances, Fernandes said.

“This group has more than adequate liquidity… we are very focused on growing and adding value,” he said.

The airline on Thursday reported it had filled 80% of the seats offered in the fourth quarter of 2021 and had the highest number of passengers since the start of the pandemic when travel rules began to be relaxed.

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