Connect with us

Hi, what are you looking for?


Virgin Atlantic to exit Malaysia’s AirAsia X

KUALA LUMPUR, Jun 28 – British business magnate Richard Branson’s Virgin Atlantic Airways is expected to sell its 10 percent stake in AirAsia X to existing shareholders for more than $21 million, a report said Thursday.

The move comes as Malaysia-based AirAsia X, one of the world’s few long-haul budget carriers, prepares for listing at the end of this year.

“The stake (belonging to Virgin Atlantic) will be taken up by Aero Ventures and AirAsia on a pro rata basis,” The Edge financial newspaper said.

AirAsia X CEO Azran Osman-Rani told AFP he was not aware of plans for Virgin to exit the firm.

“We can’t say anything. We are not privy to any of the discussions,” he said.

The Edge said that after the share sale, several individuals including Tony Fernandes who is group CEO of regional carrier AirAsia, together with business partner Kamarudin Meranum, will collectively hold 60 percent of AirAsia X.

The balance of 40 percent will be held by AirAsia, Japan’s Orix and Bahrain-based Manara Consortium.

Virgin’s involvement with AirAirAsia X when it launched in 2007 helped boost confidence in the airline at a time when the future did not look bright for long-haul budget carriers.

AirAsia X focuses on medium- and long-haul flights of more than four hours within Asia, while main carrier AirAsia operates shorter routes from its Kuala Lumpur hub.

Advertisement. Scroll to continue reading.

AirAsia X recently ceased services to London, Paris, Delhi and Mumbai to cut costs and is concentrating on lucrative routes including those to Australia and China.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...