Tony Fernandes Hints AirAsia May Lower Ticket Prices After Merger
"The fares have been up and down, because of capacity — so with this combination, the number one goal is more flights at a lower price," he told reporters.
By May Vin Ang — 17 Oct 2024, 12:28 PM
The merger of Capital A Bhd's low-cost aviation business with long-haul carrier, sister company AirAsia X Bhd, is expected to achieve a 15% reduction in operational costs
According to The Edge, Capital A chief executive officer Tan Sri Tony Fernandes said the merger, which will see both of AirAsia's short-haul and medium-to-long haul airline operations under one group, is also expected to result in more connections and new routes, increasing flight options and frequencies.
Fernandes added that this will also likely translate into lower ticket prices for consumers.
"The fares have been up and down, because of capacity — so with this combination, the number one goal is more flights at a lower price," Fernandes told reporters at a press conference on Tuesday, 15 October, in conjunction with the company's extraordinary general meeting (EGM) to discuss the merger.
The deal is expected to be completed by the end of this year, with AirAsia X's shareholders having approved the acquisition during the EGM yesterday, 16 October
According to Malay Mail, AirAsia X said 99.08% of its shareholders voted in favour of the acquisition of Capital A's entire equity interest in the aviation business, namely AirAsia Aviation Group Ltd and AirAsia Bhd, for RM6.8 billion.
The vote expressed strong support for AAX's vision to strengthen operational synergies, expand its service offerings, and to capitalise on new market opportunities.
"This pivotal decision clears the path for AAX's transformative acquisition which is expected to be completed by year-end as an enlarged aviation group, subject to final court and regulatory approvals," said the company.
AirAsia X chairman Datuk Fam Lee Ee said the acquisition gives AirAsia X access to over 200 existing aircrafts and 361 future aircraft order books from Capital A's portfolio.
This will combine both narrow-body and wide-body aircrafts into a unified group, expanding the airline's reach across short, medium, and long-haul routes.
