BEAMSTART’s Post

The need for local co-owners, plus no commonality for long haul vs short haul aircraft type (crucial issue for an LCC) have always meant complicated ownership structure for all of Airasia's airlines. Really hard to bring them all together. Benefits of the move should include simplified (ie faster) decisions on things such as capex and other funding allocations, better coordination to capture connecting travellers (ie flight schedules), and higher economies of scale (ie drive down unit costs further) for common costs such as pilot and cabin crew training, maintenance contracts, etc. Cons would be if a single airline is suffering, it will invariably negatively affect the rest (ie conglomerate discount), possible cross default risks beyond the control of any one country GM (ie need for head ofc control becomes hell of a lot stronger), and the usual internal fighting in a massive conglomerate distracting operations. So probably ditch the 330s and buy more 321LRs and XLRs? Cheers and more power to Airasia! https://lnkd.in/geXfmK5P

‘The Beginning of a New Era’ #CapitalA and #AirAsia_Group sign a conditional sale and purchase agreement on the divestment of Capital A’s airline business - Total consideration for Capital A’s disposal and correspondingly, AirAsia Group’s acquisition amounting to RM6.8 billion, to be fulfilled with shares and debt settlement - Capital A’s shareholders’ equity to turn positive for the first time in 14 quarters following the divestment, while AirAsia X's shareholders’ equity to also strengthen post-transaction - AirAsia Group to fortify its position as the largest low cost carrier in Asia, with a win-win “One Airline” strategy set to transform the face of global low cost travel - AirAsia Group’s ultimate vision to create a global network airline based on the robust narrowbody fleet with enhanced operational efficiency and extended range capabilities to lower cost Capital A Berhad (“Capital A”) and AirAsia Group Sdn Bhd (“AirAsia Group”), the newly incorporated entity that will eventually be the holding company of AirAsia X Berhad (“AirAsia X”), announced it has signed a conditional sale and purchase agreement for Capital A’s strategic divestment and AirAsia Group’s strategic acquisition of its aviation businesses (the “Transaction”). This landmark agreement, approved by the boards of Capital A and AirAsia X, is expected to catalyse AirAsia to its next growth phase to become the world’s first low-cost network carrier and redefine the aviation industry landscape..... https://bit.ly/3WAqYlZ AirAsia #Malaysia #Aviation✈️ #SoutheastAsia

‘The Beginning of a New Era’ #CapitalA and #AirAsia_Group sign a conditional sale and purchase agreement on the divestment of Capital A’s airline business - Total consideration for Capital A’s disposal and correspondingly, AirAsia Group’s acquisition amounting to RM6.8 billion, to be fulfilled with shares and debt settlement - Capital A’s shareholders’ equity to turn positive for the first time in 14 quarters following the divestment, while AirAsia X's shareholders’ equity to also strengthen post-transaction - AirAsia Group to fortify its position as the largest low cost carrier in Asia, with a win-win “One Airline” strategy set to transform the face of global low cost travel - AirAsia Group’s ultimate vision to create a global network airline based on the robust narrowbody fleet with enhanced operational efficiency and extended range capabilities to lower cost Capital A Berhad (“Capital A”) and AirAsia Group Sdn Bhd (“AirAsia Group”), the newly incorporated entity that will eventually be the holding company of AirAsia X Berhad (“AirAsia X”), announced it has signed a conditional sale and purchase agreement for Capital A’s strategic divestment and AirAsia Group’s strategic acquisition of its aviation businesses (the “Transaction”). This landmark agreement, approved by the boards of Capital A and AirAsia X, is expected to catalyse AirAsia to its next growth phase to become the world’s first low-cost network carrier and redefine the aviation industry landscape..... https://bit.ly/3WAqYlZ AirAsia #Malaysia #Aviation✈️ #SoutheastAsia

AirAsia X reveals further plans regarding acquisition of AirAsia airline group In a filing made at the Bursa Malaysia (Malaysian Stock Exchange) on April 26, 2024, the board of AirAsia X detailed its further plans regarding the company’s proposed acquisition of AirAsia Berhad, the parent organization of Malaysian low-cost carrier AirAsia plus the AirAsia Aviation Group which includes four non-Malaysian AirAsia-branded airlines.  Read more at: https://lnkd.in/gTuNMQYc #AviationTalk #aviationnews #avgeek #aviation #airasia

🚀 Exciting developments in the aviation industry today! We're seeing significant moves from some of the top players in the field: ✈️ airBaltic is making strides as they prepare for their IPO, a bold step in their growth strategy. 🌍 SAS - Scandinavian Airlines has officially joined the SkyTeam global airline alliance, expanding its network and opportunities. 🇱🇰 SriLankan Airlines Official Airlines is setting new standards with a stunning safety video that showcases safety protocols against iconic Sri Lankan backdrops. 💡 All Nippon Airways introduces its first AeroSHARK-equipped aircraft, pioneering fuel-saving innovation in partnership with Lufthansa Technik and BASF. 🍹 Emirates enhances its in-flight experience with 10 new premium spirits and beers added to its onboard menu, plus a special A380 livery dedicated to the Emirates Airline Foundation. ⚽ Etihad Airways teams up with Mumbai City FC in a new landmark partnership, strengthening their ties in the sporting world. 🌍 Virgin Atlantic has announced exciting new destinations for Summer 2025, expanding their global reach. 🤝 Ryanair - Europe's Favourite Airline and Travelfusion have joined forces, further expanding Ryanair's Approved OTA Network. 🌿 Airbus is at the forefront of sustainable aviation, developing a global ecosystem to support hydrogen-powered flight. 🏆 Pilatus Aircraft Ltd has been honored with the prestigious Living Legends Of Aviation Award for its outstanding contributions to the industry. Read more in our daily digest: https://lnkd.in/dVsdrqfT The future of aviation is looking brighter than ever! ✈️✨ #AviationNews #AviationIndustry #Sustainability #Innovation #GlobalPartnerships

Today is one of the most important days in AirAsia ‘s journey— the beginning of a new era for Capital A and AirAsia X. We have signed a groundbreaking agreement for the divestment of Capital A’s airline business and AirAsia X’s strategic acquisition that will create one AirAsia Group to cement its standing as the largest low-cost carrier in Asia. Marrying Capital A’s huge order book of 362 aircraft to AirAsia X’s diversified portfolio of traffic rights will allow us to continue our trademark of exploring new destinations and pioneering new and underserved routes. It’s the best of both worlds and the answer to our growth dilemma. All of this, of course, would not be possible without our key enabler: the new-generation Airbus aircraft, which can fly further and more efficiently than previous narrow bodies. AirAsia Group will run on a single-type fleet to connect Asean to the entire world - Europe, Africa, Central Asia, and North America. We will be able to land at smaller airports and serve more secondary cities, opening up huge potential for fly-thru flights. Trip costs will be lowered by 30% and we remove the complexities of a mixed fleet with common components and streamlined operations. At the end of the day, it’s all about our guests, Allstars and most importantly shareholders. We want to unlock and realise value for our shareholders, while remaining steadfast in our commitment to emerge successfully from PN17. Turning Capital A’s shareholders’ equity positive, which is a major step forward in exiting PN17, is a welcome benefit but ultimately immaterial in our decision to pursue this. As I always say Believe the unbelievable, Dare to dream, Never say never and Never take no for an answer. We will revolutionalise global low cost travel, once again. Watch this space.

Capital A Q2 operating results indicate a remarkable business turnaround. It is a testament to our resilience and strategic growth across all segments including aviation (AirAsia), as well as the companies we have created during Covid-- logistics (Teleport), digital (AirAsia MOVE ), and aviation services, which we now call CAPAS (Capital A Aviation Services). We are not just recovering, but setting new benchmarks in aviation and digital transformation. It can feel like a solitary path but with support and confidence from our partners, both old and new, I am confident we will emerge stronger.

AirAsia X has recently announced its intention to acquire the AirAsia airline group in a move that could potentially reshape the aviation industry. This acquisition would allow AirAsia X to expand its reach and strengthen its position in the market. The airline has stated that it is looking to streamline operations and improve efficiency by combining resources and expertise from both companies. Additionally, the acquisition could lead to cost savings and increased profitability for AirAsia X, as it would have access to a larger customer base and more routes. The airline is also planning to invest in new aircraft and technology to enhance its services and improve the overall passenger experience. Overall, this acquisition has the potential to bring about significant changes in the airline industry and position AirAsia X as a major player in the market.

Over the past years aviation business has been one with minimal margins, volume issues and one brand leading. When LCC came into picture and we saw new age airlines like Akasa, Go Air, AirAsia come in play with extreme optmisation of OPEX. It has structurally degraded the quality and safety of flights. Personally, even though Boeing and Airbus have increased the quality of hardware, human capital employed by LCC’s has fundamentally degraded the flight services. The turbulence, timing delays and customer service hazards have kept and will keep the airlines leaders who are actually focusing on getting better human capital, better services and ops management as leaders. Probabilities suggest that LCC have fundamentally very little room to survive and that’s just a function of the correlation of CAPEX OPEX minimisation and quality reduction. These airlines require cross selling, alt revenue channels and aggregator led discounts, timing arbitrage and FX arbitrary attributes and structurally focus on maintaining optimal quality and safety via focus on growth. #airlines #aviation #capex #opex #marketanalysis

Transactions: Freightos acquires SHIPSTA by Freightos; Fraport AG divests stake in Delhi Airport; Qatar Airways acquires 25% stake in Airlink; Drone Delivery Canada, Volatus Aerospace complete merger; Worldwide Flight Services (WFS) Holland proposes acquisition of Menzies Aviation Amsterdam; and IAG Cargo appoints Group Concorde as GSA in 8 countries