AirAsia to consolidate regional units as expansion plans take off

AirAsia Bhd plans to consolidate its various regional affiliates under one holding company, in contrast to a scattered structure now, as the airline takes off on a rapid expansion path in its core Southeast Asian markets. The Malaysia-based carrier, currently the listed investment holding company and the operating firm for AirAsia’s Malaysian airline business, proposed a share exchange and transfer of listing with newly created AirAsia Group Bhd, or Newco. Under the reorganisation, the investment holding function and the Malaysian airline business will be separated. Newco will become the investment holding vehicle and take on AAB’s listing. AAB will retain the Malaysian airline business and become Newco’s wholly owned unit, the airline said on Tuesday, after earlier reporting record-high quarterly revenues and a plan to expand its fleet by over 20% in H2. “This is a positive step forward as the current corporate structure is awkward. It makes sense to have one holding company that controls all the various airlines and related businesses,” said Corrine Png, CEO at research firm Crucial Perspective.<br/>