Update AirAsia X places largest Airbus order

by **Cals** Mon 15 Dec 2014, 21:14

Update
AirAsia X places largest Airbus order

KUALA LUMPUR (Dec 15): AirAsia X Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) has placed a US$15.2 bilion firm order for 55 Airbus A330neo aircrafts, which is the single largest order for the Airbus family.

In a statement this evening, the loss making low cost carrier said the deliveries of the newly-ordered aircraft will begin in 2018.

“This latest deal with Airbus will enable AirAsia X to consolidate its growth rate in 2015-2017 before ramping up deliveries from 2018 onwards,” said its co-founder and director of AirAsia X Tan Sri Tony Fernandes.

“The A330 has proven itself to be exactly the right aircraft for our business model, combining low operating costs, long range flying capability and high levels of comfort," he added.

The A330neo aircraft reduces fuel consumption by about 14% per seat and increases flight range up to 400 nautical miles. The range capability enables possible direct flights from Kuala Lumpur to Europe.

The purchase consideration for the 55 A330neo aircraft is approximately US$15.2 billion, and will be funded by a combination of borrowings, the company's internal reserves and cash generated by its operations.

"The company expects to use operating leases for all of its 2015 aircraft deliveries, to reduce up-front cash requirements and maintain its target of achieving positive free cash flow," said AirAsia X in a Bursa Malaysia filing.

By 2026, the company's total fleet size is expected to reach 82 aircraft.

AirAsia X share price ended unchanged at 68.5 sen with a market cap of RM1.62 billion.