Malaysia's AirAsia financing plan attracts interest from institutions

In a statement to the stock exchange, the budget airline said it is seeking loans from financial institutions to fully fund the initial purchases of 33 aircraft between December 2005 and December 2007, valued at about 1.2 bln usd.

It added that its board approved the proposed financing structure and the proposal is currently awaiting approval from authorities.

No further information was given.

AirAsia placed a firm order with Airbus SAS for 60 Airbus A320-200 aircraft and signed an option for a further 40 aircraft.