AirAsia Nears Strategic Investment Milestone Amid Restructuring

AirAsia, a leading budget airline in Asia, is close to securing strategic investments as it edges towards completing its restructuring efforts, according to Deputy Group CEO Farouk Kamal. These developments come as the Malaysian airline works to regain financial footing after being deemed financially distressed in 2022.

Key to its strategy is a 1 billion ringgit equity injection, alongside significant financing commitments to bolster its extensive new aircraft order list. Despite speculation, the identity of investors remains undisclosed, though attention has been drawn to potential ties with Saudi Arabia's sovereign wealth fund.

Further bolstering its future, AirAsia signed a memorandum with Airbus to purchase 50 A321XLR planes, aiming to unify its operations under the AirAsia brand. These moves are crucial in AirAsia's bid to exit financial distress, aligning long- and short-haul services in one consolidated operation.

(With inputs from agencies.)