Latest news with #Teleport
BusinessToday
07-05-2025
- Business
- BusinessToday
Capital A To Expand Into Saudi Arabia With New Aviation And Logistics Ventures
Capital A Bhd today unveiled plans to expand its operations into Saudi Arabia as part of a broader Middle East growth strategy. The Group aims to introduce new AirAsia routes to Riyadh and Dammam, while also increasing flight frequencies to Jeddah from Kuala Lumpur. Additionally, it is exploring new connections from Bangkok and Jakarta to Riyadh, further enhancing connectivity between the ASEAN region and the Middle East. Beyond expanding its airline services, Capital A plans to introduce its entire business ecosystem to Saudi Arabia, including Teleport, its growing logistics arm, Asia Digital Engineering (ADE), which provides aircraft maintenance services, and AirAsia MOVE, a digital travel platform offering end-to-end travel booking solutions. The announcement follows high-level discussions between Capital A's leadership team, including CEO Tony Fernandes and Tassapon Bijleveld, CEO of AirAsia Thailand, and Saudi officials from the Ministry of Investment, General Authority of Civil Aviation (GACA), and the Ministry of Transport. These discussions focused on potential strategic partnerships in airline connectivity, Red Sea tourism development, and logistics and aircraft engineering services. Tony Fernandes commented on the opportunities in Saudi Arabia, saying, 'The cultural shift, the transformation in people's lives, and the scale of ambition is truly mind-blowing. The energy is infectious, and we're excited to grow with our brothers and sisters in Saudi Arabia.' He also highlighted the potential of the new Riyadh route, forecasting it to serve nearly one million two-way passengers by 2026 and over seven million by 2030, reflecting strong demand for connectivity between ASEAN and the Gulf region. As part of its logistics focus, Teleport plans to collaborate with Saudi logistics hubs and free trade zones to establish efficient cargo corridors, aiming to support Saudi Arabia's Vision 2030 goals of becoming a global logistics hub. AirAsia's extensive belly cargo capacity will support this effort, helping to position the Kingdom as a transshipment point for goods moving between Asia, Europe, and Africa. Additionally, ADE aims to support the Kingdom's rapidly growing aircraft maintenance sector by potentially setting up line maintenance facilities at key airports, training local talent in aviation engineering, and sharing best practices in maintenance, repair, and overhaul (MRO) services. Saudi Arabia has now become a top priority market for Capital A, following its successful expansion into India and China. The Kingdom's Vision 2030 is transforming it into a global tourism and logistics hub, offering significant opportunities for Capital A's multi-vertical business model to contribute to this growth. Further updates on route launches, operational timelines, and ecosystem collaborations are expected to be announced in the near future. Related
New Straits Times
07-05-2025
- Business
- New Straits Times
Capital A expands into Saudi Arabia, new routes include Riyadh, Dammam
KUALA LUMPUR: Capital A Bhd is embarking on a strategic expansion into Saudi Arabia, starting with new flight routes and extending into logistics, digital travel services, and aircraft engineering. The group's Middle East growth initiative will commence with direct services to Riyadh and Dammam, along with increased flight frequencies on the Kuala Lumpur–Jeddah route. As part of its broader ambition to enhance connectivity between ASEAN and the Middle East, the low-cost carrier is also assessing potential new routes from Bangkok and Jakarta to Riyadh. Beyond aviation, the expansion will bring Capital A's key subsidiaries to Saudi Arabia, including its logistics arm Teleport, maintenance, repair, and overhaul (MRO) provider Asia Digital Engineering (ADE), and its digital travel platform AirAsia MOVE. The announcement follows high-level meetings between Capital A leadership—led by CEO Tony Fernandes and AirAsia Thailand CEO Tassapon Bijleveld—and Saudi government representatives, including the Investment Ministry, the General Authority of Civil Aviation (GACA) and the Transport Ministry. Discussions covered airline connectivity, Red Sea tourism initiatives, and potential partnerships in logistics and engineering services. Fernandes said Saudi Arabia's dynamic spirit and bold national vision align perfectly with Capital A's growth philosophy, making Saudi Arabia a natural partner for the group's next phase of regional expansion. "There's a real drive to build something big, especially the breathtaking Red Sea development, which I must say is one of the most ambitious tourism and infrastructure projects in the world. The scale of it is truly inspiring, and that energy is infectious," he said in a statement. He projected that the new Riyadh route alone could serve nearly one million two-way passengers by 2026, scaling to over seven million by 2030, highlighting strong regional travel demand. Teleport aims to tap into Saudi Arabia's logistics hubs and free trade zones to establish efficient cargo corridors between Asean and the Middle East. With AirAsia's extensive network and belly cargo capacity, the venture could support Saudi Arabia's Vision 2030 goal of becoming a global logistics hub by facilitating the flow of goods between Asia, Europe and Africa. Meanwhile, ADE will explore opportunities to support the country's fast-growing aviation MRO sector, potentially establishing line maintenance facilities at key Saudi airports and helping train local talent in aircraft engineering.
The Sun
07-05-2025
- Business
- The Sun
Capital A plans major aviation and logistics expansion to Saudi Arabia
PETALING JAYA: Capital A Bhd today announced plans to significantly expand into Saudi Arabia, marking a pivotal step in the group's Middle East growth strategy. The multifaceted initiative will begin with AirAsia introducing new routes to Riyadh and Dammam, while increasing flight frequencies to Jeddah from Kuala Lumpur. The group is also studying new connections from Bangkok, Thailand, and Jakarta, Indonesia, to Riyadh, as part of its wider ambition to enhance Middle East connectivity across the Asean region. The expansion extends well beyond airline operations, as Capital A plans to introduce its entire business ecosystem to the kingdom, including Teleport – Capital A's rapidly growing logistics arm; Asia Digital Engineering (ADE) – providing comprehensive aircraft maintenance and engineering services; and AirAsia MOVE – the digital travel platform offering seamless end-to-end travel booking solutions The announcement follows high-level discussions between Capital A's senior leadership team, including CEO Tan Sri Tony Fernandes and AirAsia Thailand CEO Tassapon Bijleveld and officials from the Saudi Ministry of Investment, General Authority of Civil Aviation and the Ministry of Transport. The meetings explored strategic partnerships across airline connectivity, Red Sea tourism development initiatives and potential collaborations in logistics and aircraft engineering services. Fernandes said: 'I am absolutely blown away by what's happening in Saudi Arabia – the cultural shift, the transformation in people's lives and the sheer scale of ambition is truly mind-blowing. But, more importantly, it's the motivation and mindset of the Saudi people that moved me. There's a real drive to build something big, especially the breathtaking Red Sea development, which I must say is one of the most ambitious tourism and infrastructure projects in the world. The scale of it is truly inspiring, and that energy is infectious.' He added, 'We believe the new Riyadh route is projected to serve close to one million two-way passengers by 2026 and more than seven million by 2030, reflecting strong demand for increased connectivity between Asean and the Gulf region. We have so many projects we're excited to embark on from logistics to aircraft engineering; we're ready to grow with our brothers and sisters in Saudi Arabia.' As part of the group's logistics focus, Teleport aims to explore working with Saudi logistics hubs and free trade zones to establish efficient cargo corridors between Asean and the Middle East, enabling faster, cost-effective movement of goods including e-commerce. With AirAsia's extensive belly cargo capacity and network reach, the partnership could help position Saudi Arabia as a key regional transshipment point for goods moving between Asia, Europe and Africa - supporting the kingdom's Vision 2030 goals of becoming a global logistics hub. Meanwhile, ADE will explore opportunities to collaborate with Saudi aviation stakeholders to support the kingdom's fast-growing aircraft maintenance, repair and overhaul sector. This may include setting up line maintenance facilities at key Saudi airports, training and upskilling local talent in aviation engineering, and sharing best practices in cost-efficient, high-quality MRO services. With the exponential growth of airlines in the region, ADE aims to contribute to building a robust and self-sustaining aviation support ecosystem in Saudi Arabia. Saudi Arabia now ranks as a top priority market for Capital A, following its rapid expansion in India and China. With Vision 2030 transforming the Kingdom into a global tourism and logistics hub, Capital A's multi-vertical model is uniquely positioned to contribute meaningfully to its growth trajectory.
New Straits Times
07-05-2025
- Business
- New Straits Times
Capital A charts bold epansion into Saudi Arabia to boost connectivity
KUALA LUMPUR: Capital A Bhd is embarking on a strategic expansion into Saudi Arabia, starting with new flight routes and extending into logistics, digital travel services, and aircraft engineering. The group's Middle East growth initiative will commence with direct services to Riyadh and Dammam, along with increased flight frequencies on the Kuala Lumpur–Jeddah route. As part of its broader ambition to enhance connectivity between ASEAN and the Middle East, the low-cost carrier is also assessing potential new routes from Bangkok and Jakarta to Riyadh. Beyond aviation, the expansion will bring Capital A's key subsidiaries to Saudi Arabia, including its logistics arm Teleport, maintenance, repair, and overhaul (MRO) provider Asia Digital Engineering (ADE), and its digital travel platform AirAsia MOVE. The announcement follows high-level meetings between Capital A leadership—led by CEO Tony Fernandes and AirAsia Thailand CEO Tassapon Bijleveld—and Saudi government representatives, including the Investment Ministry, the General Authority of Civil Aviation (GACA) and the Transport Ministry. Discussions covered airline connectivity, Red Sea tourism initiatives, and potential partnerships in logistics and engineering services. Fernandes said Saudi Arabia's dynamic spirit and bold national vision align perfectly with Capital A's growth philosophy, making Saudi Arabia a natural partner for the group's next phase of regional expansion. "There's a real drive to build something big, especially the breathtaking Red Sea development, which I must say is one of the most ambitious tourism and infrastructure projects in the world. The scale of it is truly inspiring, and that energy is infectious," he said in a statement. He projected that the new Riyadh route alone could serve nearly one million two-way passengers by 2026, scaling to over seven million by 2030, highlighting strong regional travel demand. Teleport aims to tap into Saudi Arabia's logistics hubs and free trade zones to establish efficient cargo corridors between Asean and the Middle East. With AirAsia's extensive network and belly cargo capacity, the venture could support Saudi Arabia's Vision 2030 goal of becoming a global logistics hub by facilitating the flow of goods between Asia, Europe and Africa. Meanwhile, ADE will explore opportunities to support the country's fast-growing aviation MRO sector, potentially establishing line maintenance facilities at key Saudi airports and helping train local talent in aircraft engineering.
Malaysian Reserve
06-05-2025
- Business
- Malaysian Reserve
Capital A sets sights on Hong Kong listing
The company sees the exchange as a key platform to reach deeper pools of international and mainland Chinese investors by RUPINDER SINGH CAPITAL A Bhd is actively exploring a potential listing on the Hong Kong Stock Exchange (HKEX), a move aimed at widening access to global capital markets and positioning its diverse ecosystem of digital and aviation services for the next phase of expansion. In a statement last Friday, it said that the initiative follows a recent senior-level meeting with HKEX representatives, during which Capital A was invited to consider a listing in Hong Kong. The company sees the exchange as a key platform to reach deeper pools of international and mainland Chinese investors, who are increasingly drawn to ASEAN-led growth stories with strong China ties. It noted that talks are progressing, with Capital A close to appointing an international investment bank to advise on the proposed listing structure and timeline. The launch of the formal process remains subject to internal evaluations and regulatory approvals, it said. 'Capital A is proudly rooted in ASEAN but built for the world,' said Capital A CEO Tan Sri Tony Fernandes. 'With over 20 destinations across Greater China and significant business exposure in the region, we see Hong Kong as a natural capital markets gateway. A dual listing would allow us to tell our story on a global stage and connect with a broader investor base that values digital-first, asset-light business models,' he added. Fernandes also highlighted the growing recognition of Capital A's non-airline businesses, including Teleport, Asia Digital Engineering (ADE) and AirAsia MOVE. 'Teleport, ADE, and our digital travel platform AirAsia MOVE have received great recognition and this is an exciting opportunity that aligns with our ambition to accelerate growth, attract new strategic investors, and maximise long-term shareholder value,' he added. Capital A's portfolio includes ADE, a maintenance, repair and overhaul (MRO) provider serving airlines across the region; Teleport, a rapidly growing logistics network; and AirAsia MOVE, a digital travel and lifestyle platform that continues to gain traction. Capital A said the prospective Hong Kong listing is viewed as a natural progression following Capital A's ongoing efforts to exit Practice Note 17 (PN17) status, with its regularisation plan on track for completion by mid-2025. Once out of PN17, the group intends to pursue strategic initiatives to strengthen its capital structure and global reach. Capital A said Hong Kong's deep capital markets, enhanced listing regime and strategic connectivity, with both global and Chinese investors make the HKEX an attractive destination for high-growth, internationally exposed Asean companies. It added that the rising participation via Southbound Stock Connect and a more diversified investor base further reinforce Hong Kong's role as a gateway to global scale. Audit Clarification on MUGC In a separate Bursa Malaysia announce- ment last Friday, Capital A disclosed that its external auditor, Ernst & Young plt (EY), had issued an unqualified audit opinion for its financial year ended Dec 31, 2024, but with a para- graph on material uncertainty related to going concern (MUGC). The MUGC highlights that as at the date of the audit report, certain milestones critical to Capital A's proposed disposals and restructuring plan remain outstanding. These include regulatory and lender approvals, and the successful completion of AirAsia X Bhd's RM1 billion private placement. The auditor noted that if these conditions are not met within the stipulated time frame, the related share sale agreements would lapse, potentially impacting the group's ability to deconsolidate its aviation assets and restore financial stability. Despite this, the auditors stressed that their opinion on the financial statements remains unqualified. The inclusion of the MUGC paragraph is a procedural requirement and does not indicate concern over the group's operational fundamentals. The proposed disposals referenced in the audit include the sale of Capital A's entire stakes in AirAsia Aviation Group Ltd and AirAsia Bhd to AirAsia X, for a combined consideration of RM6.8 billion. These disposals are central to Capital A's plan to restructure its balance sheet and exit PN17. To Complete Restructuring by June Building on its audited results, Capital A reiterated that it remains on track to complete its regularisation and restructuring plan by June 2025. 'While EY draws attention to the timing of our restructuring — particularly the RM1 billion placement for AirAsia X — this reflects the scale and significance of the plan, not any weakness in our fundamentals,' said Fernandes. He stressed that the MUGC is a technical feature of audit protocol, not a verdict on business viability. 'We want to assure our shareholders that the inclusion of the MUGC paragraph is an audit requirement when certain milestones remain pending at the date of issuance of the audit report — even when they are well on track. It does not reflect any concern about the strength of our business. In fact, meaningful progress is being made across all fronts, and we remain confident in completing all components of our restructuring plan successfully.' Its group CFO Mun Hui Teh added that discussions with auditors indicate the MUGC paragraph will be lifted once the remaining conditions — notably the completion of the RM1 billion placement and final regulatory approvals — are met. 'From a financial standpoint, we are seeing strong indicators of recovery. The first quarter of 2025 was particularly encouraging, and with investor confidence solidifying, we are focussed on delivering a clean exit from PN17 and positioning Capital A for long-term growth,' she said. This article first appeared in The Malaysian Reserve weekly print edition
