Both Capital A and AirAsia X were hard hit by pandemic travel restrictions and classified by Malaysia’s stock exchange as PN17, or financially distressed. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.
AirAsia X was removed from the classification in November, after undertaking measures to improve its financial position.
Fernandes said the group’s airlines will likely return to full pre-pandemic capacity by the end of the first quarter. He said they have 400 planes on order and Airbus will start delivering new A321 aircraft by the second quarter of 2025.
It also hopes to add routes to Europe, South America and Africa by the end of this year.
Fernandes, who told the briefing that he intends to retire within five years, said the airline sale would help Capital A raise funds and focus on its non-aviation business, which includes payments firm BigPay, logistics arm Teleport, and online travel agency airasia MOVE.
“We are confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognised for their intrinsic value and potential,” he said in a separate statement.
Capital A plans to present a PN17 regularisation plan by Jun 30, after the completion of the aviation disposal, he said