Malaysia's Capital A, parent of AirAsia, plans to raise up to $400m in equity through a merger of its aviation business by July, creating a new airline called AirAsia Group.

Malaysia's Capital A, parent of budget airline AirAsia, plans to raise up to $400 million in equity through a merger of its aviation business by July, with additional $200 million bond-raising pending regulatory and shareholder approval. The merger will result in the creation of a new airline called AirAsia Group, as Capital A consolidates its long and short-haul operations under a single AirAsia brand.