Riyadh – Sharikat Mubasher: Saudi Arabia's Public Investment Fund (PIFis set to invest $100 million in Malaysian airline AirAsia as the carrier is seeking funds after facing financial challenges stemming from the pandemic and supply chain issues.
Bloomberg reported that while an official announcement could come within weeks, AirAsia is still in talks with potential investors from Singapore and Japan.
AirAsia’s controlling shareholder, Capital A Bhd, is exploring a restructuring plan to merge the airline with its sister company, AirAsia X Bhd. The carrier also has an order backlog of 350 aircraft with Airbus SE, some of which have been reassigned to the Saudi airline Riyadh Air.
The move provides Riyadh Air, owned by PIF, with additional aircraft as it prepares to begin operations later this year. PIF’s aviation portfolio includes an aircraft leasing firm, space and defense investments, and a 15% stake in London’s Heathrow Airport.
PIF plays a key role in Saudi Arabia’s economic transformation under Vision 2030, which aims to reduce oil dependency and build a thriving tourism sector with a target of 150 million visitors by 2030. While PIF was once seen as a quick funding source for foreign investors, recent shifts have seen it prioritize domestic projects and scale back on costly international investments. This includes adjustments to the ambitious $1.5 trillion Neom desert project.
