The AirAsia Group will sell a portfolio of 25 planes to US private investment firm Castlelake LP for $768 million. Castlelake will lease the same aircraft back to the Malaysia based budget airline AirAsia.
Castlelake will also purchase four new aircraft that will be delivered to AirAsia in 2019, the airline said in a statement.
All the 29 planes – Airbus’ A320-200ceo and A320neo – will be leased back to AirAsia.
For AirAsia, the deal marks another move to monetize its assets as Asia’s biggest budget airline seeks to transform itself into an asset-light, digitally focused firm. The carrier is cashing in on a booming leasing sector after ordering hundreds of Airbus SE planes at bargain prices in recent years to become one of Airbus’ biggest customers, stated a Reuters report.
It said proceeds from the disposal would mainly be for the repayment of existing debt and to defray estimated expenses for the proposed transaction.
“The board believes that the proposed transaction is in line with AirAsia group’s strategy to focus on its core airline operations, while allocating resources within AirAsia group in a more efficient manner,” read a statement.
“With the proposed transaction, AirAsia will be able to preserve its existing funds for its future business and provide a stable platform for AirAsia to expand its route network, without the financial commitment of owning aircraft which are capital intensive in nature and/or undertake new and appropriate investment opportunities to maximise shareholders’ returns.”
The deal also highlights the strong appetite of funds to invest in the aircraft leasing sector, which is seeing rising demand on the back of an increase in low-cost carriers and passenger traffic.
The Turkish Aerospace Industries (TAI) is highlighting its 5th Generation Jet Fighter KAAN, as well as its T625 Gokbey Helicopter…
Sarsilmaz is bringing its range of weapons to the ongoing show. The company is displaying its defence products from small…
Roketsan is showcasing its well-earned reputation in the development of groundbreaking technologies in rocket, missile and weapon systems at this…
An insight into possible weapon options for the Royal Malaysian Air Force’s (RMAF) new Korean Aerospace Industries (KAI) FA-50 light…
Countries across regions are increasingly staying away from Russian arms since due to the fear of inviting U.S. sanctions, opening…
Fresh after its success in deploying 5G services in India, Vietnam’s Military Industry and Telecoms Group (Viettel) is at the…
Saab is displaying its training solutions for modern training needs at the ongoing DSA. The company is also showcasing its…
Ranhill Defence & Technology a Malaysian provider of defence solutions has partnered with Thai manufacturer of defence vehicles Chaiseri to…
BrahMos Aerospace Private Limited (BAPL), the Indo-Russian manufacturer of cruise missiles is presenting its offering for use on air, land…
STM, a prominent player in the Turkish defence sector is showcasing its naval platforms and tactical mini-Unmanned Aerial Vehicle (UAV)…
Indian provider of anti-ballistic solutions SMPP Private Limited is presenting its range of bullet-proof armour-based solutions at the ongoing show.…
DRB-HICOM Defence Technologies Sdn. Bhd. (DEFTECH) is marking a strong presence at the ongoing with a wide range of offerings…
DRB-HICOM Defence Technologies Sdn Bhd (Deftech), a subsidiary of DRB-HICOM Bhd is now undertaking developmental flight testing of Malaysia’s first-ever…
The Royal Malaysian Navy (RMN) is seeking to procure two assault craft for its special forces unit, Paskal. These assault…
The Malaysian Army is set to bolster its arsenal with additional mortar systems following previous acquisitions from Spain. In 2022,…
Leonardo is displaying a model of the ATR 72 MPA in Royal Malaysian Air Force (RMAF) colours. Two ATR 72…
Pakistan based defence firm Global Industrial & Defence Solutions (GIDS) is showcasing its growing range of defence products at the…
The ongoing edition of Defence Services Asia (DSA) and National Security (NATSEC) Asia 2024 now underway is slated to result…
BAE Systems is highlighting the capabilities of Nautomate, an autonomous control system for uncrewed marine vehicles, by demonstrating it on…
Turkish defence firm, ASELSAN is showcasing a growing range of defence equipment and services at the ongoing show, in order…
Emirates has announced the first set of destinations to be served by its A350 aircraft entering service in September 2024.…
Ocean Infinity, has presented a new MH370 underwater search proposal to Anthony Loke, the Malaysian Minister of Transport in Kuala…
The 18th edition of Defence Services Asia this year (DSA 2024) is expected to be the biggest ever in the…
It is not a coincidence that the Turkish contingent at the show is one of the largest. The Turkish defence…
Aselsan is keen to grow its market presence in Malaysia and is participating in the ongoing DSA with a wide…
"During the DSA event, we will be holding important discussions on what we can do to strengthen the naval defence…
Turkiye’s SDT Space & Defence Technologies has brought a wide range of its products to the ongoing show. Among the…
Leonardo, which is showcasing a wide range of products at the ongoing show, has a longstanding presence in Malaysia of…
Rohde & Schwarz is displaying its turnkey mission-proven solutions to achieve full situational awareness at the ongoing show. The company is showcasing…
Belgium-based FN Herstal is showcasing its portfolio of modern small arms at the ongoing Defence Services Asia (DSA) exhibition and…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.