Capital A Plans to Raise Up to $400 Million for Airline Unit

Capital A Bhd. is planning to raise as much as $400 million for its airline entity as the company seeks to tap into surging travel demand in Asia and expand its fleet of aircraft.

The firm has appointed bankers and plans to start the capital raising process soon, with the funds to go toward expanding its fleet to 300 planes from about 200 currently, Chief Executive Officer Tony Fernandes said in a Bloomberg TV interview in Davos Thursday. The merger of Capital A’s short-haul aviation business to long-haul affiliate AirAsia X Bhd., announced earlier this month, is expected to ...