AirAsia X (D7, Kuala Lumpur International) has negotiated another two months to complete its proposed acquisition of Capital A’s short-haul aviation businesses, including AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad, a January 24, 2025, Bursa Malaysia filing announced.

"During this period, AirAsia X will also finalise the definitive terms with identified investors for the proposed private placement, aimed at raising gross proceeds of MYR1 billion ringgits" (USD230 million), a separate AirAsia X statement reads.

"This extension is a pragmatic step to ensure all aspects of the transaction are thoroughly and meticulously addressed, including securing the final approvals and consents from relevant authorities, financiers, and lessors - most of which have already been substantially completed," said AirAsia X CEO Benyamin Ismail.

Under the terms of the deal, AirAsia X will take over the running of all AirAsia airlines. This includes Malaysia's AirAsia itself and the Filipino, Indonesian, Thai, and Cambodian affiliates presently under the AAAGL umbrella. The deal is expected to unlock synergies including improved network connectivity, optimised fleet utilisation, and improved cost efficiencies. It is also intended to help overall parent company Capital A to exit Practice Note 17 status, which Bursa Malaysia put it under in 2022.

"By consolidating operations under one entity, the airline will be better positioned to expand its market presence across Asia-Pacific and beyond while delivering greater value to shareholders and customers," the statement added.