Capital A expects airline business to see full recovery by Q4

KUALA LUMPUR: Capital A Bhd (formerly known as AirAsia Group Bhd), expects the airline business to see a full recovery in the fourth quarter of this year (Q4 2022) -- back to the pre-COVID-19 levels -- due to pent-up demand in light of the reopening of many international borders.

Chief executive officer (CEO) Tan Sri Tony Fernandes said demand for domestic travel has accelerated, with fewer people flying long-haul, adding that the group sees a huge opportunity in the Indian market and will continue to push the intra-ASEAN market to support its growth.

"We feel that our planes will be back in service by Q4 2022 with or without China. If China comes in, that is a huge bonus.

"Q4 2022 could be a different picture in China (as the country is still closed for the time being), but we are anticipating that China will be fully opened. We hope that by Q4 2022, all our 200 aircraft would be deployed," he told reporters during an online briefing on the group's further reorganisation today.

The group's airline aircraft utilisation currently stood at 45 per cent.

Earlier, Fernandes announced that the holding company for the airline group, AirAsia Aviation Ltd (AAAL) has been renamed as AirAsia Aviation Group Ltd (AAAGL), reflecting the group's recovery and growth strategy by consolidating all of its airline operations under one entity to focus on the expansion of the business within the larger ecosystem.

He also announced the appointment of Tan Sri Jamaludin Ibrahim as the new airline group entity's independent non-executive chairman to provide fresh perspectives and robust board leadership to support the strategic growth of the airline businesses.

"Under the new structure, AAAGL will oversee all airlines in Capital A, as well as related international support functions including AirAsia Consulting; shared corporate services division, AirAsia SEA; the Santan food group; and the ground handling services joint-venture business, GTR," he said.

Meanwhile, AAAGL Group CEO Bo Lingam said the structural changes aim to provide a separate, robust, and lean platform for the airline operations, supporting Capital A's continued focus to become more than just an airline.

"AAAGL will become one of the key pillars under Capital A, alongside the new digital businesses and aircraft engineering company, Asia Digital Engineering (ADE) - which is also preparing to announce a new board of directors in the near future as a separate entity to AAAGL.

"The future growth of the aviation group is expected to come from new ventures, partnerships, geographies and adjacent businesses, expanding the aviation group's broader ecosystem," he added.

-- BERNAMA