AirAsia Berhad leases A320-200 to AirAsia India, to pay USD45m in lease payments over 144 months

AirAsia Berhad announced (05-Sep-2014) that it commenced on 05-Sep-2014 a leasing arrangement in relation to an A320-200 aircraft (serial number 6034) to be operated by AirAsia (India) Private Limited (AirAsia India). The company noted: "AirAsia India will pay a total consideration of RM142,888,400 [USD45 million] for the term of the Agreement", adding: "The consideration is in the form of monthly lease payments payable in advance by AirAsia India". The term of the agreement shall be for 144 months and AirAsia India shall pay a security deposit in the form of cash or a letter of credit. On the rationale of the agreement, AirAsia Group said: "The Company currently leases aircraft to the other joint venture airlines within the AirAsia Group in its ordinary course of business. In line with AirAsia's growth strategies, the fleet expansion of AirAsia India would help to maximise route opportunities in the South Asia. The growth of AirAsia India would provide the following benefits to the Company and the AirAsia Group: i. Extended leverage on AirAsia brand and distribution presence; ii. Strengthen the AirAsia Group commercial and operational economies of scale; and iii. Ability to feed traffic between South East Asia and AirAsia India domestic network and vice versa". [more - original PR]