AirAsia orders 200 A320neo aircraft powered by LEAP-X engines
AirAsia placed (23-Jun-2011) a firm order with Airbus for 200 A320neo aircraft. The contract is the largest order ever placed for the A320 family and makes AirAsia the biggest airline customer for the Airbus narrowbody product line. The order is worth USD18.5 billion at list prices. The order is the largest ever Airbus deal by number of aircraft as well as the largest ever order for aircraft in the A320 family. AirAsia signed an agreement with CFM International’s for 400 LEAP-X engines to power the aircraft. AirAsia has also signed a 20-year RPFH (Rate per Flight Hour) agreement with CFM to provide comprehensive engine MRO service. The airline is scheduled to begin taking delivery of aircraft in 2016. Altogether, AirAsia has now placed firm orders for 375 A320 family aircraft, with 89 already in service. Deliveries will be funded through a combination of borrowings, internal reserves at AirAsia and cash generated by operations. External sources of funding include but not limited to export credit guaranteed borrowings, conventional and Islamic commercial loans and sale and leaseback transactions.
A320/A320neo delivery schedule:
- 2011: 7 A320s;
- 2012: 14 A320s;
- 2013: 13 A320s;
- 2014: 18 A320s;
- 2015: 19 A320s;
- 2016: 15 A320s and four A320neos;
- 2017: 14 A320neos;
- 1018: 18 A320neos;
- 2019: 19 A320neos;
- 2020: 20 A320neos;
- 2021: 21 A320neos;
- 2022: 22 A320neos;
- 2023: 24 A320neos;
- 2024: 24 A320neos;
- 2025: 24 A320neos;
- 2026: 9 A320neos. [more -Airbus] [more - AirAsia] [more - Engine order]
AirAsia: “With this historic deal AirAsia has secured its future with the ability to meet the huge growth potential offered by the Asian market. Our decision to be one of the launch customers for the A320neo will ensure that we remain at the forefront of our business, with one of the world's youngest and most modern fleets," Tony Fernandes, Group CEO. Source: AirAsia, 23-Jun-2011.
AirAsia: "We have a gearing of under 2 now and we can fund most of the purchases from operating cash flow. There is a lot of appetite in the debt market. But right now, we carry all the debt on the books in Malaysia. However, as the Thai and Indonesian IPOs come, and the Philippines venture takes off, we will move the debt to their balance sheets. In any case, most of our existing debt will be paid off by 2016,” Tony Fernandes, Group CEO. Source: Business Times, 23-Jun-2011.