NEWS: AirAsia Consolidates Airline Brands as Part of Major Group Restructuring

AirAsia Group has announced a major consolidation of its airline brands as part of a comprehensive restructuring exercise led by its sister company, Capital A Bhd.. As a key milestone in this transformation, AirAsia X Bhd has been renamed AirAsia, effective yesterday, 19 January 2026.,

The announcement was made by AirAsia founder Tan Sri Tony Fernandes in a LinkedIn post dated 13 January, where he outlined the group’s strategic vision following the completion of its post-pandemic recovery efforts. Fernandes said the restructuring addresses legacy debt incurred during the Covid-19 pandemic and positions the group for its next phase of growth.

“With the completion of this restructuring, AirAsia will be able to move forward stronger, leaner, and more focused,” Fernandes said, adding that the group is targeting earnings margins of up to 30% as operational efficiencies take hold.

As part of the consolidation, AirAsia is finalizing its future aircraft orders and implementing improved fleet planning strategies. Fernandes noted that a more optimized fleet structure will enable the airline to significantly reduce operating costs while improving profitability and margins across its network.

Currently, AirAsia X operates only long-haul AirAsia flights. The company is also in the midst of acquiring Capital A Bhd’s short-haul aviation businesses in a transaction valued at RM6.8 billion, a move that will unify short-haul and long-haul operations under a single AirAsia brand.

Looking ahead, the group is exploring the establishment of a strategic hub in Bahrain, which would serve as a gateway linking Asia, Europe, Africa, and the Americas. Fernandes described the vision as building a “low-cost version of Emirates and Qatar Airways,” enabling AirAsia to operate a truly global low-cost network spanning all continents.

In tandem with these initiatives, the group will apply for Capital A to be removed from its PN17 classification by Bursa Malaysia, a designation for financially distressed companies that was applied during the pandemic. The move reflects the group’s improving financial position and confidence in its long-term sustainability.

The consolidation and restructuring mark a pivotal step in AirAsia’s evolution, reinforcing its ambition to emerge as a global, cost-efficient aviation group with a unified brand and expanded international reach.