Airasia says transfer of five aircraft incomplete as deals lapsed


  • Business
  • Thursday, 10 Jan 2019

The five aircraft are leased to third party airlines with an estimated enterprise value of US$173.67mil.

PETALING JAYA: AirAsia Group Bhd, which is selling its aircraft leasing business to BBAM Ltd Partnership, says the transfer of aircraft and aircraft engines under the deal has been completed except for five aircraft.

In a filing with Bursa Malaysia yesterday, the low-cost airline said the transfer of five aircraft was incomplete as the agreements have now lapsed.

The five aircraft are leased to third party airlines with an estimated enterprise value of US$173.67mil.

AirAsia said the transfer of the other aircraft and aircraft engines to BBAM had been completed.

“The company wishes to announce that the transfers of aircraft and aircraft engines under the Herondell sale and purchase agreement, the Incline B Aviation Ltd Partnership and Fly Leasing Ltd have already been completed except for five aircraft, which are leased to third-party airlines,” AirAsia said.

In March last year, BBAM said it was acquiring AirAsia’s aircraft leasing business, Asia Aviation Capital Ltd (AAC), for US$1.18bil (RM4.619bil) via its managed entities, Herondell Ltd, Incline B Aviation and Fly Leasing.

Following the announcement of the deal, shares in AirAsia soared to RM4.60 apiece. At yesterday’s close, shares in the company increased two sen to RM3.

Through this deal, AirAsia is disposing a total of 84 aircraft and 14 aircraft engines by AAC to BBAM’s managed entities. Following the sale, 79 aircraft and 14 engines will be leased back to AirAsia and its affiliates for up to 12 years.

Additionally, under the agreement, AirAsia will see more aircraft disposals moving ahead, as the company has entered into agreements with the same BBAM-managed entities to sell 98 aircraft to be delivered in the future up until 2025.

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