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Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Philippines orders AirAsia MOVE shutdown on excessive pricing
During the weekend, AirAsia MOVE charged US$1,380 for a one-way ticket from Manila to Tacloban City via Philippine Airlines. (Air Asia pic) MANILA : The Philippines has ordered AirAsia's digital platform to stop selling airline tickets in the country following complaints it charged illegally high fares. 'The authorities have asked the police to take down AirAsia MOVE's website as part of a cease-and-desist order by the Civil Aeronautics Board,' transportation secretary Vince Dizon said at a press conference today. The aviation agency, which sets price ceilings for airfares in the country, says the company hiked its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. 'We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,' Dizon said. 'Authorities will move to immediately file a case for 'criminal economic sabotage' against the digital platform, which is owned by Capital A Berhad,' Dizon added. Malaysia-based AirAsia MOVE, which is an affiliate of budget carrier Philippines AirAsia, didn't immediately respond to a request for comment. During the weekend, AirAsia MOVE charged ₱77,000 (US$1,380) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier's website, transportation ministry data show. 'Clearly, this is just absurd,' Dizon said at the briefing. 'What AirAsia MOVE is doing is criminal,' he added.
South China Morning Post
4 days ago
- Business
- South China Morning Post
Philippines slams Malaysia's AirAsia for ‘criminal' ticket prices, shuts down website
The Philippines has ordered AirAsia's digital platform to stop selling airline tickets in the country following complaints it charged illegally high fares. Advertisement The authorities have asked the police to take down AirAsia MOVE's website as part of a cease-and-desist order by the Civil Aeronautics Board, Transportation Secretary Vince Dizon said at a press conference on Monday. The aviation agency, which sets price ceilings for airfares in the country, says the company raised its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. What AirAsia MOVE is doing is criminal Philippine Transportation Secretary Vince Dizon 'We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,' Dizon said. Authorities will move to immediately file a case for 'criminal economic sabotage' against the digital platform, which is owned by Capital A Berhad, Dizon added. Malaysia -based AirAsia MOVE, which is an affiliate of budget carrier Philippines AirAsia, did not immediately respond to a request for comment. Philippine Transportation Secretary Vince Dizon speaks to the media last month. Photo: Reuters At the weekend, AirAsia MOVE was charging 77,000 pesos (US$1,380) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier's website, transportation ministry data showed.
Hype Malaysia
08-05-2025
- Business
- Hype Malaysia
Capital A & AirAsia Looking To Expand Routes Into Saudi Arabia
It looks like AirAsia has its eyes on Saudi Arabia! Capital A Berhad recently shared exciting plans for its company and AirAsia, highlighting a potential expansion into Saudi Arabia with new routes and flight frequencies. In a recent statement, the airline group behind AirAsia said it's planning to expand into Saudi Arabia as part of its Middle East growth strategy. Capital A said the expansion plans include introducing new routes to Riyadh and Dammam and increasing flight frequencies to Jeddah from Kuala Lumpur. The company is also exploring potential connections from Bangkok and Jakarta to Riyadh, which could help boost Middle East-ASEAN connectivity. Capital A also plans to introduce its entire business ecosystem to extend the expansion beyond airline operations. The ecosystem includes Teleport, its logistics arm; Asia Digital Engineering (ADE), its aircraft maintenance and engineering service; and AirAsia MOVE, the digital travel platform. The airline group hopes the collaboration could enable faster and more cost-effective movement of goods. Capital A CEO Tony Fernandes spoke about the expansion, saying the new Riyadh route is projected to serve close to one million two-way passengers by 2026 and more than seven million by 2030. He added that projections reflect the strong demand for increased connectivity between ASEAN and the Gulf region. The CEO also expressed excitement over the new projects, saying, 'We're ready to grow with our brothers and sisters in Saudi Arabia.' In its statement, Capital A said that Saudi Arabia now ranks as a top priority market for the company, following its rapid expansion in India and China. The airline group believes its multi-vertical model could contribute to the Kingdom's growth trajectory. AirAsia currently offers weekly flights from Kuala Lumpur to Saudi Arabia. The company will announce further updates on route launches, operational timelines and ecosystem collaborations in the future. New routes and higher flight frequencies mean more opportunities for exploration, so start planning your dream Saudi Arabia trip today! What are your thoughts on this? Source: AirAsia Newsroom
Arabian Post
06-05-2025
- Business
- Arabian Post
Capital A Targets $200 Million Through Hong Kong Listing Amid Strategic Overhaul
Capital A Berhad, the parent company of budget airline AirAsia, is preparing for a secondary listing on the Hong Kong Stock Exchange, aiming to raise at least $200 million. This move is part of a broader strategy to access deeper pools of capital in Greater China and to support the company's ongoing financial restructuring. The proposed listing follows a series of significant financial maneuvers by Capital A, including a $226 million private placement completed in March 2025. This placement featured a $100 million investment from Saudi Arabia's sovereign wealth fund, with additional contributions from investors in Singapore and Japan. These funds are intended to bolster the company's capital base and facilitate its exit from Malaysia's financially distressed PN17 classification. Capital A has also secured a $443 million revenue bond, with $200 million provided by Ares Management Corp and Indies Capital Partners. This financing is earmarked for reactivating aircraft grounded during the pandemic and refinancing existing lease liabilities, thereby strengthening the company's balance sheet. The company is undergoing a significant restructuring, including the sale of its aviation business to long-haul affiliate AirAsia X. This consolidation aims to unify short and long-haul operations under a single AirAsia brand, streamlining operations across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. The merger is expected to create a new listed entity valued at approximately $1.42 billion. Capital A's financial performance has shown signs of recovery, with a net profit of RM2.01 billion reported in the third quarter of 2024, partly due to foreign exchange gains. The company anticipates a return to profitability in 2025, following a loss of $106.5 million in 2024 attributed to one-off forex losses. The Hong Kong listing is seen as a strategic move to tap into the region's revitalized equity markets and attract mainland Chinese investors. Capital A is reportedly close to appointing an international investment bank to advise on the listing structure and process, pending internal reviews and regulatory approvals. CEO Tony Fernandes has emphasized that the company's financial uncertainties are linked to pending milestones rather than underlying business strength. He remains confident in completing the regularization and restructuring efforts by June 2025. As part of its commitment to transparency, Capital A has announced plans to publish internal business targets alongside quarterly results. This initiative aims to provide investors with a clearer picture of the company's financial outlook and progress toward its strategic goals. The company's efforts to exit PN17 status are progressing, with shareholder approval secured for the aviation business disposal and a vote scheduled for May 7 to revoke its distressed classification. Capital A also plans to retain an 18% stake in the resulting AirAsia airline group, focusing on its non-aviation businesses, including logistics firm Teleport and aircraft maintenance company Asia Digital Engineering.
BusinessToday
02-05-2025
- Business
- BusinessToday
Capital A's Auditors Flag Material Uncertainty Over Going Concern
Capital A Berhad has announced that its external auditors, Ernst & Young have issued an unqualified audit opinion on the company's audited consolidated financial statements for the financial year ended 31 December 2024. However, this opinion includes a 'material uncertainty related to going concern' paragraph. This disclosure, made pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, highlights significant doubt regarding the Group's and the Company's ability to continue as a going concern. The material uncertainty stems from the fact that, as of the date of the audit report, key milestones related to the company's Proposed Disposals remain incomplete. These include obtaining necessary approvals from government entities, financiers/lenders, and third parties for both Capital A and AirAsia X Berhad (AAX). Additionally, AAX has yet to raise RM1.0 billion as part of these disposals. Capital A had previously announced a Proposed Regularisation Plan on 24 October 2024, involving a proposed reduction of its issued share capital of up to RM6.0 billion. This plan received approval from Bursa Securities on 7 March 2025. A circular to shareholders and notice to holders of redeemable convertible unsecured Islamic debt securities (RCUIDS) concerning the plan was issued on 15 April 2025. Extraordinary general meetings to seek shareholder and RCUIDS holder approval are scheduled for 7 May 2025. The company stated that the material uncertainty highlighted by the auditors is linked to the ongoing implementation of both the Proposed Disposals and the Proposed Regularisation Plan. Capital A anticipates that the concerns leading to the 'material uncertainty related to going concern' paragraph will be resolved upon the fulfillment of the remaining conditions precedent for the Proposed Disposals, which are expected to be completed by the second quarter of 2025, barring any unforeseen circumstances. Related
