Stock Today: Capital A Slips At Midday As MAG Eyes Bigger Jet Deal With Airbus
The market's subdued sentiment came as industry attention turned to Malaysia Aviation Group's (MAG) potential aircraft order expansion. According to industry sources, MAG, the parent of Malaysia Airlines, is close to firming up an order for additional Airbus A330neo long-haul jets, with a possible announcement expected during Prime Minister Anwar Ibrahim's official visit to Paris this week.
While the deal has no direct bearing on Capital A, which operates the low-cost AirAsia fleet, the anticipated order underscores MAG's growth ambitions in full-service long-haul operations, a segment Capital A has also explored in the past through its widebody arm, AirAsia X.
The Airbus development, paired with broader industry moves in aerospace and fleet modernisation, is seen by some investors as a potential reconfiguration moment for Malaysia's aviation landscape. The earlier 2022 agreement between MAG and Airbus included 20 confirmed A330neo orders with options for another 20, which the group is now considering exercising. MAG has also signalled interest in evaluating larger aircraft such as the Airbus A350, Boeing 787 and Boeing 777X.
Capital A continues to focus on digital expansion and its MRO business through Asia Digital Engineering, but investor sentiment has remained cautious amid increased competition and slow financial clarity on the group's transformation.
The counter has been consolidating just below the RM0.90 threshold in recent weeks, with aviation stocks broadly reacting to both global macro headwinds and shifting strategic alignments among key players. Related
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