SEPANG, 26 June 2023: Aviation Group’s AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia and AirAsia Philippines are flying high again, with 157 aircraft reactivated as of 1Q2023, according to a recent Capital A financial update to shareholders attending the AGM.
Capital A CEO Tony Fernandes told shareholders that “with enhanced profitability amid rationalised airfares and stabilising external factors”, the airline group had activated 229 routes so far with a target to operate 290 by the close of the 4th quarter of 2023.
On the airline group’s health check, he told shareholders attending the recent AGM: “2022 has truly been a defining year for Capital A for many reasons: the company generated strong revenue ofMYR2.6 billion and recorded the first full year of positive EBITDA since the beginning of the global pandemic.
All businesses within the group have benefited from the robust return of air travel and delivered stronger margin levels. As we overcame all odds of not only surviving but growing, despite the unprecedented challenges of Covid and other macroeconomic headwinds without any government support, we are proud to announce that we have successfully progressed from an airline to now a low-cost, high-value inclusive aviation and travel group.”
He confirmed ‘Move – AirAsia Digital’ has received board approval to be renamed MOVE. It will cover the business activities of AirAsia Superapp and fintech provider BigPay to provide an accessible, affordable travel app, to meet the needs of all travellers, including on-ground travellers with ride-hailing offerings on AirAsia ride.
He made the comments in a presentation at the close of the Capital A 6th Annual General Meeting earlier this month when the financial results of FY2022 were received and passed by its shareholders.
Fernandes confirmed that the group’s latest airline venture, AirAsia Cambodia, should start scheduled flights during the last quarter of 2023, possibly by mid-December, almost a year after the official launch of the new airline.
“We are expanding across ASEAN based on a wide network and a strong brand, with the launch of AirAsia Cambodia expected to start operating in Q4, we are looking for opportunities in the remaining ASEAN countries that deserve an airline,” he told the AGM.
Capital A Berhad will own 51% of AirAsia Cambodia in partnership with hospitality group Sivilai Asia which will hold the remaining share, according to a report in Laotian Times.
The joint venture agreement with Sivilai Asia was signed last December by Tony Fernandes and Vissoth Nam, director of Sivilai Asia at Rosewood Phnom Penh.
Media sources in Kuala Lumpur have reported that AirAsia Cambodia, the group’s fifth airline venture, will start flights to destinations in Asia within a four-hour flight time perimeter using A321-200 aircraft. AirAsia has not confirmed details so far, but it is understood the airline could eventually fly 15 aircraft flying to neighbouring countries from Siem Reap, Sihanoukville and Phnom Penh.
Source: AirAsia and Laotian Times