As the proposed merger of AirAsia and its Malaysia-based long-haul arm AirAsia X Berhad (AirAsia X) nears completion, the budget airline group (AirAsia Aviation Group/AirAsia Group) announced plans to introduce more than 30 new routes and boost connections within its airlines.
According to the AirAsia Group, the consolidation of the short and medium haul airlines into an enlarged, airline group will “further enhance the airline's position in the industry, strengthening its network and operational synergies.”
First announced in April 2024, the move will result in the acquisition of Malaysia-based AirAsia Berhad and AirAsia Aviation Group carriers – which includes subsidiaries based in Thailand, Indonesia, the Philippines, and Cambodia – by AirAsia X from Capital A Berhad. AirAsia X shareholders approved the proposed acquisition of Capital A's equity interest in AirAsia units for around MYR 6.8 billion (~USD $1.5 billion) in October 2024. Capital A shareholders also approved the deal ahead of the AirAsia X shareholders' decision.
During the year (2025), AirAsia Group stated it will be focused on enhancing cost leadership, optimizing network and flight frequencies, and improving operational performance across key markets including Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. The efforts aim to support growth in high-demand destinations such as India, China, and throughout ASEAN.
AirAsia Group further stated the network optimization is expected to be completed by the second quarter of 2025. The airline group plans to increase frequency across high-demand routes beginning the same period, while evaluating new routes to meet growing intra-Asia travel demand by easing visa initiatives across key markets including China, India, Thailand, and Malaysia.
The airline group also plans to enhance its Fly-Thru services – which the airline group refers to passenger connections from one AirAsia flight to another at a transit hub. Connections can be done between different group carriers.
“In 2025, as we return to full capacity, we’ll be balancing growth with profitability. Our network strategy will prioritise strategic, demand-driven connectivity across Asia. With over 30 new routes and increased frequencies on our most popular services, we are responding directly to market demand and Fly-Thru opportunities,” said Bo Lingam, Group CEO, AirAsia Aviation Group.
Lingam further added the airline group aims to increase passengers making connections between AirAsia flights to 7 million in 2025, after serving 4.3 million in 2024. Its two biggest connecting hubs - Kuala Lumpur International Airport (KLIA) and Bangkok-Don Mueang - handles 95% of the airline group's connecting traffic.
In addition, the airline group aims to expand its other hubs and add over 1,700 weekly return flights/323,336 weekly seats across the group by year's end.
AirAsia Group expects to operate a fleet of 234 narrowbody aircraft across the five short-haul airlines in the region. The planned growth will be supported by the addition of 30 aircraft which comprises of 16 reactivated and 14 new aircraft to be delivered later this year.
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