KUALA LUMPUR (Aug 29): AirAsia Bhd, Asia's largest low-cost carrier, plans to establish a holding company under which its airline operation in Malaysia and its various regional affiliates will come under its control.
The new holding company structure will see AirAsia's Malaysian operation, its five affiliates in the Philippines, India, Thailand, Indonesia and Japan, as well as its digital-related services and intellectual properties consolidated into five separate business segments.
In a filing with Bursa Malaysia today, AirAsia said the proposed structure will see the transfer of the associate companies held under AirAsia Investment Ltd (AAIL) and involved in regional airline business to the new holding company to be known as AirAsia Group Bhd, where upon completion AAIL may be liquidated.
AirAsia Group will become the investment holding vehicle assuming the listing status of AirAsia, while AirAsia will continue to operate the Malaysian airline business as a wholly-owned subsidiary of AirAsia Group.
AirAsia said such structure will enable the management to have the flexibility to further streamline its group structure and businesses or operations as management deems fit.
Bursa Malaysia Announcement: