Aviation PIF plans major investment in Malaysia’s AirAsia By Reuters March 7, 2025, 10:41 AM Alamy via Reuters Passengers disembarking from an AirAsia Airbus A320 at Kuala Lumpur, Malaysia. The airline has a $225m fundraising target Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, is to invest $100 million in Malaysia’s Capital A-owned budget airline AirAsia, Bloomberg News reported on Thursday, citing people familiar with the matter. The Middle East investment forms the majority of AirAsia’s approximately one billion ringgit ($225 million) fundraising target, with the company also in discussions with potential investors from Singapore and Japan, the media report added. The report, citing a person familiar with the matter, said the Malaysian airline is raising funds and offering investors up to a 15 percent stake at a $2 billion valuation, as it works on a growth strategy after pandemic-induced losses. The parent company expects to record a profit this year after a loss in 2024 when it recorded a one-off charge in its aviation business. PIF weighs investment in Boeing’s Italian parts maker SalamAir to expand fleet as budget travel demand rises Saudi budget airline Flynas expects IPO approval soon Capital A is also offloading the budget carrier to long-haul unit AirAsia X Bhd to consolidate the operations under a single AirAsia brand. Asian airlines in general faced a challenging year in 2024 with supply chain problems disrupting operations and exposing them to strengthening consumer protection rules, according to industry executives.
