Malaysian carrier changes name to Capital A

Airasia planes are parked at Kuala Lumpur International Airport 2, amid the coronaviruses outbreak in Sepang, Malaysia on October 6, 2020. Jan 28, Reuters - Malaysia's AirAsia Group Bhd AIRA.KL said on Friday it had changed its name to Capital A Bhd to reflect its growing portfolio of businesses beyond the core budget airline.

The airline business has been hard hit because of strict travel rules in Asia, leading Malaysia's stock exchange to classify the firm as financially distressed, though it has been raising funds to bolster its balance sheet. The group proposed changing its name on January 3.

Capital A is investing heavily in BigPay, its logistics arm Teleport and its mobile Super App to gain other revenue sources, even though they are in growth phases and were loss-making in the quarter ended Sept. 30, 2021.

Over the past two years, Capital A Chief Executive Tony Fernandes said in a statement that the downturn has been focused on building a solid foundation for a viable and successful future.

He said the airline business will retain the brand AirAsia, which is well known in Asia.

Fernandes told reporters at a launch event in Kuala Lumpur that the carrier, which has five affiliate airlines, including long-haul operator AirAsia XAsia X, plans to introduce two more to its stable. He didn't want to give further details.

Fernandes said the group is looking to raise around 1 billion ringgit this year, as it continues to try to regularise its finances.

The group has more than enough liquidity. He said that we're focused on adding value and growing more value.

The carrier reported that it filled 80% of seats on offer in the fourth quarter of 2021 and had the highest number of passengers since the start of the epidemic as travel rules began to be relaxed.