Tony Fernandes, the chief executive of Capital A, which operates the AirAsia group of budget airlines, will delay his retirement plans after committing to remain in his role for another five years.

Fernandes said the decision stems from his desire to ensure Capital A’s survival.

The board of directors at Capital A offered an executive pay package “designed to align the CEO’s interests with those of the shareholders, and [ensure] a shared commitment to drive the long-term success and sustainability of Capital A”.

Tony Fernandes still in command

In January, Fernandes announced plans to retire within the next five years but felt compelled to continue as CEO after receiving requests from the board of the company to remain at the helm.

Apart from his role as CEO, Fernandes will also serve as a strategic advisor for the AirAsia Aviation Group in an effort to manage the aviation leadership team more effectively and ensure they fully benefit from digital innovation.

The CEO – whose quirky personality has led him to be compared to the billionaire founder of Virgin Atlantic, Sir Richard Branson – said he was “excited to embark on the journey of completing the full transformation of Capital A”.

Capital A soaring to new heights?

The Malaysia-based Capital A, formerly known as the AirAsia Group, operates the popular regional budget carrier AirAsia.

With its fleet of 200 aircraft, AirAsia services Southeast Asia and China, but is reeling from financial setbacks caused by travel restrictions during the pandemic. The limited air travel crippled its operations.

As a result, the Malaysian stock exchange classified Capital A, the parent company of AirAsia, as a PN17 company, indicating that it is financially distressed.

While Capital A is most closely associated with air travel and the AirAsia brand, the holdings company is planning to gain a foothold in other industries and geographies.

In late February, Capital A teamed up with special purpose acquisition company Aetherium Acquisition Corp to debut on Nasdaq as Capital A International, with a valuation of US$1.15 billion.

“We are optimistic about the potential for our brand business to expand well beyond our origins,” Fernandes said at the time.