AirAsia may divest part or all of Asia Aviation Capital

AirAsia planes prepare for take off at Don Mueang International Airport in Bangkok, Thailand, June 29, 2016. REUTERS/Chaiwat Subprasom/File Photo TPX IMAGES OF THE DAY

KUALA LUMPUR: AirAsia Bhd’s management is carrying out a strategic review of its leasing unit Asia Aviation Capital Ltd (AAC), including the potential divestment of all or a substantial portion of its equity interest in AAC or its business or assets.

In a filing with Bursa Malaysia, the low-cost carrier said the strategic review was part of its continual review of its businesses and operations to enhance shareholders value and there was no certainty that it would result in a transaction.

“The company will update the market on the strategic review as and when appropriate,” it said in response to a Reuters report on Thursday that said AirAsia aimed to attract an equity investor to AAC.

A Reuters report earlier this month said the sale of AAC, which carries out the aircraft leasing business within the AirAsia Bhd group and with third party airlines, could value the business at about US$1bil (RM4.02bil).

AirAsia said that moving forward, AAC’s core lessor offerings would include purchase of aircraft from original equipment manufacturers or airlines or lessors and lease to airline customers; aircraft portfolio trading to enhance asset diversification strategy; and expansion of sale and leaseback portfolio by access to immediate delivery slots.

AAC’s ancillary services offered included maintenance programme, spare engine leasing, as well as advisory, it said.

* See also AirAsia values leasing arm at RM4.1bil

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

CGS-CIMB Research keeps GDP forecast of 4.4% for 2021
Glove makers power KLCI higher
Foreign funds step up selling on Bursa Malaysia
Ringgit opens easier following MCO3.0 extension
Quick take: Central Global shares hit highest in 17 years
Top Glove shares jump after surge in its ADR in the US
Trading ideas: Genting, Minetech, IJM, KLK, Uzma
Quick take: Minetech rises 5.2% on new contract in Sarawak
Kenanga recommends 'accept offer' for IJM Plantations if MGO triggered
Summary of business news June 7 to 13

Stories You'll Enjoy