AirAsia Group to become a single brand by December 2025
AirAsia is preparing to consolidate all its airlines under a new umbrella organization, AirAsia Group, as its parent company Capital A completes its restructuring by next month. The move will position AirAsia as the world’s first global low-cost carrier operating entirely with narrow-body aircraft.
The group confirmed that it will switch to a fleet of just one aircraft model, the A320/A321. This will also comprise long-range Airbus A321XLRs, to support expansion across Asia, the Middle East, and eventually Europe.
The company already canceled all outstanding orders for wide-body Airbus A330s and intends to phase out the entire A330 fleet within the next five to six years. This signals a major strategic shift for the brand. And it also puts an end to rumors of AirAsia acquiring China’s aircraft C919.
Tony Fernandes, CEO of Capital A Bhd, explained that, “Our goal is to become the world’s first all-narrow-body low-cost airline group. This will allow us to operate more efficiently and expand faster into new regions.”
Fermandes added that the restructuring will ultimately create two distinct entities: the AirAsia Group will oversee all airline operations. While Capital A will manage non-aviation businesses.
Flying over 150 million passengers a year in a decade time
Under the plan, AirAsia X will disappeared and be integrated into the new AirAsia Group. The entity will comprise the seven existing airlines in operation in Southeast Asia under one management structure. Each airline will remain a separate legal entity, but operationally integrated.
Looking ahead, AirAsia aims to grow its fleet from 255 aircraft today to more than 600 within 10 years. Passenger capacity is expected to more than double, from 68.8 million to around 155 million travelers annually, as the network expands from 143 to 175 destinations.
Fernandes also said discussions are underway to launch a new AirAsia airline in Vietnam, while confirming no immediate plans to enter the Singapore market.
Capital A recently signed also a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to explore establishing Bahrain as a Middle Eastern hub.
The LOI sets out a framework for deeper aviation and economic cooperation, including collaboration on future airline operations, cargo and logistics, maintenance, and talent development.
“This marks the beginning of a long-term partnership connecting Southeast Asia with one of the fastest-growing aviation regions in the world,” Fernandes added.
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