AirAsia plans to sell and lease over 100 planes
AirAsia Group plans to offload up to 120 aircraft in a bid to cut debt.
The airline would sell and lease back the aircraft in stages over a 10 year period, said chief executive Tony Fernandes.
"The plan would not affect capacity expansion through the development of new routes and rationalizing the existing network,." Fernandes told Today Online.
He said the plan would ultimately give the airline a net gain of about $2.5 billion.
"Investors haven’t really given us credit for the fact that we in fact own everything and that we have a $2 billion cash pile," said Fernandes.
"We are profitable in Malaysia and Thailand, Indonesia is breaking even and the Philippines will break even in the fourth quarter of this year."
"We are not in this for the short-term. It took us five years to break even in Thailand and there’s no way that we will give up Indonesia. The country has such tourism potential."
Fernandes would start by offering 20 aircraft for sale this year.
"This would go hand in hand with raising fresh funds and bringing in new strategic investors. At least $50 million in new equity will come in and we will match it."
The AirAsia group plans to list its Indonesian and Philippines’ regional airline units by 2017 which is expected to raise between $100-$150 million from each IPO.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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