AirAsia X announced (18-Sep-2013) it has entered into a JV agreement with Tassapon Bijleveld and Julpas Kruesopon, the shareholders of Thai AirAsia X (TAAX), to set out the terms governing the parties' relationship in TAAX and to regulate the businesses and affairs of the carrier. Under the JV, TAXX will have a paid-up capital of THB1.1 billion (USD35.3 million) divided into 112.5 billion ordinary shares, at the par value of THB10 (USD0.32) per share of which AirAsia X has subscribed for 49%, resulting in a total capital contribution of up to USD17.15 million up to 2015. Mr Bijleveld and Mr Kruesopon's capital and investment outlay in TAAX, up to 2015, will be equivalent to USD14.35 million (41%) and USD3.5 million (10%), respectively. The board of TAAX will consist of at least three directors nominated by AirAsia X and the chairman of TAAX board, appointed by other shareholders. [more - original PR]
AirAsia X enters into a joint venture with shareholders of Thai AirAsia X
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Malaysia's AirAsia X: plans to lease two used 777-300ERs for London Gatwick summer 2017 relaunch
Malaysian long haul low cost airline AirAsia X is planning to dry lease two 777-300ERs from 2Q2017 to support the resumption of services to London Gatwick in Jun-2017. Its joint venture airline in Thailand is also aiming to launch long haul services to Europe in summer 2017 with a new route to Frankfurt, using the group’s existing A330-300ceo fleet.
The lease of second hand 777-300ERs enables AirAsia X to accelerate the relaunch of flights between its main home market of Malaysia and Europe. Previously AirAsia X was intending to wait for the delivery of the A330-900neo to resume long haul flights, which it last operated in 2012 with inefficient A340-300s.
The group was initially aiming to start operating A330-900neos from 2018, but first delivery has been delayed to early 2019. Short term leases on two 777-300ERs therefore give AirAsia X at least an 18 month jump on resuming London – a strategically important market.
However, the 777-300ERs come with high risks and costs, particularly given the current market conditions and the relatively low density full service airline configuration that AirAsia X inherits with the aircraft.
AirAsia X may relaunch London in 2017, potentially with ex-SriLankan A350s
Malaysia’s AirAsia X is considering the lease of A350s or 777-300ERs in 2017 to accelerate its return to Europe. A new widebody type will add cost and complexity but is necessary if the medium/long haul low cost airline is to meet its objective of relaunching London as soon as possible.
AirAsia X had been planning to wait until it receives A330-900neos before relaunching London and commencing other European routes. However the airline prefers not to wait until 2H2018, when its A330-900neo deliveries are slated to begin, and using another aircraft type in the interim mitigates the impact of a potential delay with the A330neo variant required for Kuala Lumpur-London.
AirAsia X could also use a new aircraft type – most likely A350-900s – to support new routes to the US. It plans to launch services from Japan to Hawaii in Jun-2017 using A330ceos, but also has longer-term plans for longer routes from Japan to Las Vegas, Los Angeles and San Francisco – and potentially ultra-long haul routes from Malaysia to the US.