Capital A unit, not AirAsia, bidding for SriLankan Airlines
Capital A Bhd CEO Tony Fernandes has clarified that the group’s unit AirAsia Consulting is the entity bidding to acquire SriLankan Airlines, and not AirAsia. “I know it’s confusing, and AirAsia ...
RSS · July 22, 2026 at 3:49 AM
KUALA LUMPUR, 22 JULY 2026 —
Capital A Bhd's unit, AirAsia Consulting, is bidding to acquire SriLankan Airlines, according to CEO Tony Fernandes, clarifying that it is not AirAsia that is making the bid. Fernandes stated that AirAsia Consulting will soon change its name to Capital A Consulting. The entity is looking to set up its own fund to invest in airlines outside of the ASEAN region, while AirAsia remains focused on the ASEAN market.
Market Impact
The bid for SriLankan Airlines is part of AirAsia Consulting's strategy to explore investment opportunities in airlines beyond ASEAN. AirAsia Consulting is a wholly owned subsidiary of Capital A, which is currently working to regularize its financials after being classified under Practice Note 17 (PN17). To exit this classification, Capital A has initiated various corporate exercises, including merging its airline businesses with AirAsia X Bhd and listing its branding business in the US. The company is taking steps to strengthen its financial position and expand its reach through strategic investments.
The bid for SriLankan Airlines is a significant development in the aviation industry, with six companies vying for the state-run carrier. The Sri Lankan government is seeking to reduce losses incurred by government-owned enterprises as part of a US$2.9 billion International Monetary Fund (IMF) program. AirAsia Consulting has submitted its documents under the request for qualification (RFQ) process but has not submitted a price bid, as due diligence has not been carried out yet. The next stage will involve the review of documents and the selection of contenders to purchase the airline, according to AirAsia Consulting CEO Subashini Silvadas.
In Malaysia, the development is being closely watched, as it may have implications for the local aviation industry. Capital A's bid for SriLankan Airlines reflects the company's ambitions to expand its reach beyond ASEAN. The success of the bid could potentially lead to increased cooperation and investment between Malaysian and Sri Lankan airlines, benefiting the regional aviation industry. However, details on the potential impact on the Malaysian market are not yet available.
The bid for SriLankan Airlines is a key aspect of AirAsia Consulting's growth strategy, with the company seeking to invest in airlines outside of ASEAN. AirAsia, on the other hand, remains focused on the ASEAN market, with no plans to deviate from this goal. The distinction between AirAsia and AirAsia Consulting is crucial, as the two entities have different objectives and strategies. AirAsia Consulting's bid for SriLankan Airlines is a testament to the company's willingness to explore new opportunities and expand its reach in the global aviation industry.
The outcome of the bid for SriLankan Airlines is still uncertain, with the next stage of the process involving the review of documents and the selection of contenders. AirAsia Consulting's chances of success are unclear, as the company faces competition from five other bidders. However, with its strong track record and expertise in the aviation industry, AirAsia Consulting is a credible contender for the acquisition of SriLankan Airlines. Details on the timeline and potential outcomes of the bid are not yet available, and the market will be closely watching developments in the coming weeks and months.
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