Merger of AirAsia and AirAsia X set for December close
October 21, 2025
The merger of AirAsia Aviation and AirAsia X is set to close in December after clearing a hurdle to gaining regulatory approval in Thailand. A 17 October disclosure by AirAsia X to the Bursa Malaysia states that it and AirAsia Aviation parent Capital A have agreed to waive a condition to obtain an exemption from the Securities and Exchange Commission of Thailand. This would have allowed the airline to proceed without having to take over Thai AirAsia's parent company Asia Aviation. Instead, once the merger is completed, AirAsia X "together with an identified Thai third party acting as a joint offeror" will launch a tender offer for Asia Aviation shares, to be arranged and funded by the other party. AirAsia X's equity interest in Asia Aviation will remain at 40.7% once the offer is completed, and Thai AirAsia's operations will be unaffected. In a separate press statement, AirAsia X says that with the condition waived, "both parties expect to announce all condition precedents met and that the share sale and purchase agreement will become unconditional by the end of October, followed by the completion of the transaction expected in December". The other steps required to close the deal include a capital reduction and distribution, share allotment, and listing of additional shares. Capital A chief executive Tony Fernandes says in a LinkedIn post that the company is "entering the final phase of one of the most complex restructurings in business history". The merger of Capital A's airline businesses with AirAsia X has been in process since January 2024, when a non-binding letter of acceptance was signed. There have been several extensions to the deadline as a result of regulatory and lender consent delays.
Airlines warn EU261 reforms could push annual cost to €15bn
October 21, 2025
Europe's airline industry has warned that the European Parliament's plans to reform EU261 passenger-compensation legislation could double the cost of complying and threaten the affordability of travel. The regulation, which mandates compensation for delays, has long been a cornerstone of EU consumer protection. But in a joint policy paper, industry bodies the European Regions Airline Association (ERA), IATA and lobby group A4E argue that the cost of complying could rise from around €8 billion per annum to over €15 billion under changes proposed by the European Parliament. Per-passenger costs would increase from €5 to €10 per flight. On 13 October, members of the European Parliament on its Transport & Tourism Committee adopted negotiating guidelines aimed at strengthening EU air passenger rights, including maintaining the current entitlement to compensation for delays of 3h or more, while introducing new rights such as free seats for children and guaranteed cabin-luggage allowances. That follows on from reform proposals published by the European Council, representing nation states, that would have extended the minimum delay for which compensation from 3h to as high as 6h. This was rejected by parliamentarians.
Boeing to integrate Starlink antennas on Virgin Atlantic 787s
October 17, 2025
Virgin Atlantic has agreed with Boeing to implement SpaceX's Starlink satellite connectivity on its 787-9 fleet. Boeing states that the service agreement was announced on 15 October at the MRO Europe event and will see it install a new antenna fairing to accommodate antennas that will support Starlink and "multi-orbit connectivity". "Partnering with Boeing to bring Starlink's next-generation connectivity to our 787 fleet is another important step in creating a 'home away from home' experience for every customer," says Virgin Atlantic chief customer officer Corneel Koster. "We're witnessing rapid advances in satellite and antenna technology, and we're proud to provide our OEM-backed engineering expertise and hardware that will enable Virgin Atlantic to bring faster, more reliable connectivity to their 787 Dreamliner fleet," says Boeing Global Services' vice president of cabin, modifications and maintenance Doug Backhus.