AirAsia has unveiled ambitious plans to establish Kuala Lumpur International Airport (KLIA) as a world-leading aviation hub, rivaling Dubai‘s success.
This bold strategic move follows a crucial milestone. This week, Capital A Berhad’s shareholders overwhelmingly approved the transfer of its aviation business to AirAsia X Berhad.
This took place at a recent Extraordinary General Meeting (EGM), marking a significant transformation in Southeast Asian aviation.
A Unified Airline Group
The shareholder vote on October 14 showed remarkable support, with 99.97% backing the proposed transfer.
This pivotal decision helps Capital A exit its PN17 status and concentrate on four key areas. These are Capital A Aviation Services (CAPAS), MOVE Digital, Teleport, and the AirAsia brand company.
The final step awaits AirAsia X shareholders’ approval on October 16, setting the stage for a unified airline group by year-end, promising enhanced operational efficiency and market reach.
Transport Minister YB Anthony Loke Siew Fook praised this recent development. “AirAsia and Malaysia Airports Holdings Berhad deserve recognition for making KLIA the world’s second most connected airport, according to OAG.”
“Their partnership showcases Malaysia’s growing influence in global aviation through exceptional connectivity and infrastructure. This achievement reinforces our nation’s commitment to excellence in air travel services.”
AirAsia Regional & International Strategy
Looking ahead to 2025, AirAsia plans significant expansion to meet growing regional and international demand. The airline will:
- Increase its fleet from 63 to 76 aircraft, representing a 21% growth
- Boost daily flights from 230 to 258, enhancing connectivity
- Add 8 new destinations, reaching 106 locations across multiple continents
- Focus on developing secondary airport networks in key Asian markets
This comprehensive growth strategy extends well beyond 2025. Between 2026 and 2027, AirAsia will focus on Pacific and East Asian markets. This will then be followed by strategic expansion into emerging African regions.
The airline plans to target significant Middle Eastern growth by 2028. This is then capped with ambitious plans to explore European and North American routes by 2030.
Capital A CEO Tony Fernandes reflected on this milestone. “The EGM results mark a turning point in creating a powerful aviation group. Our team has shown incredible resilience through recent challenges, emerging stronger and more determined.”
“We deeply appreciate MAHB’s partnership in developing KLIA into a world-class hub, helping make Asean the next Dubai of air travel. This transformation represents not just growth, but a complete reimagining of regional air travel.”
Kuala Lumpur KLIA: Current Standing
KLIA’s impressive standing as the world’s second most connected airport, after London Heathrow, stems from its extensive network and strategic location.
The airport offers over 14,500 low-cost connections across 137 destinations, with AirAsia leading the charge. Together, AirAsia and AirAsia X handle 43% of KLIA’s flights and 74% of its low-cost carrier traffic. It significantly outperforms its regional competitors in Singapore and Bangkok.
OAG Aviation’s Head of Asia, Mayur Patel, commended this achievement. “AirAsia’s dominant presence at KLIA and MAHB’s recognition among top MegaHubs demonstrate successful airline-airport collaboration. “
“This partnership positions both entities for continued growth in global aviation, setting new standards for regional connectivity and operational excellence.”
Summary
This strategic restructuring strengthens AirAsia Group’s position as it exits PN17 status, creating a more robust and unified aviation entity. By combining short-haul and long-haul operations, the unified group aims to boost efficiency and profitability.
This seeks to cement Kuala Lumpur’s position as a leading aviation hub. The move promises to deliver enhanced value for shareholders. Concurrently, it will establish a stronger foundation for sustainable growth in the increasingly competitive global aviation market.
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