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Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates. During a press conference on Thursday (30 October), Tan Sri Tony Fernandes, who is the CEO of Capital A Bhd, stated that he anticipates the group will leave Practice Note 17 (PN17) status in December as it progresses with consolidating its airline operations under AirAsia X Bhd. Fernandes stated that the group would submit its PN17 upliftment application in December. Capital A Berhad announced that all conditions for the disposal of its airline business to AirAsia X Berhad (AAX) have been fulfilled, marking a major milestone in the consolidation of all AirAsia airline operations under a single entity. The company said the sale and purchase agreements with AirAsia X have now become unconditional following the completion of all outstanding requirements, including stakeholder consents, RM1 billion in private placement commitments for AAX, and a key regulatory exemption from Thailand secured earlier this month. With these hurdles cleared, both parties will now proceed with the remaining procedural steps — including Capital A’s capital reduction and distribution exercise, the allotment and listing of AAX shares, and other formalities — expected to be completed by December. A PN17 uplift application will follow in the same month. “This is a monumental day for me. We’ve pushed through every approval and obstacle over the past year to make these deals happen. This marks the final chapter of what felt like a never-ending ordeal — and the beginning of a new journey for Capital A,” Fernandes said. Following the completion of the consolidation, the newly formed AirAsia Group will operate as a unified airline entity encompassing all seven AirAsia carriers, covering both medium- and short-haul operations. The group’s strategy will centre on multiple regional megahubs rather than a single home market, with ambitions to become the world’s first narrowbody low-cost network carrier. The move aims to strengthen connectivity, improve aircraft utilisation, reduce unit costs, and support fleet expansion with the Airbus A321neo and A321XLR aircraft. Meanwhile, Capital A will transition into a multi-platform travel and digital group, focusing on five high-growth businesses: engineering arm ADE, logistics provider Teleport, travel platform AirAsia MOVE, F&B brand Santan, and its rebranded brand licensing and IP division AirAsia NEXT (formerly Abc.). “These five companies have the potential to become market leaders in their industries, just as AirAsia transformed regional air travel,” Fernandes said. “Our resilience and discipline have carried us through — and now we’re ready to scale new heights,” he added. With the restructuring entering its final phase, Capital A is positioning itself for life after PN17, aiming to drive sustainable growth and long-term value for shareholders through its travel and digital ecosystem. What is PN17? PN17 is a rule used by Bursa Malaysia, the Malaysian stock exchange, to identify financially troubled companies — basically companies that are in financial distress or no longer meet certain financial requirements to stay in good standing as a listed company. A company is labelled a PN17 company if it, for example, has big losses, negative equity, or auditors say there’s doubt about its ability to continue operating. Once classified as PN17, the company must come up with a plan to fix its finances (called a “regularisation plan”) and submit it to Bursa Malaysia for approval. If it fails to do this within the given timeframe, the company could be delisted (removed) from the stock exchange. So, when Capital A talks about applying for a “PN17 uplift,” it means they’re asking Bursa Malaysia to remove that financially distressed label — showing that they’ve turned things around and are financially stable again. Capital A was officially classified as a PN17 company following the severe impact of the COVID-19 pandemic on the air travel industry. Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
