AirAsia to sell leasing arm
By Steve Creedy Sun Aug 28, 2016
Low-cost powerhouse AirAsia has reported a second quarter profit increase of more than 40 per cent and announced it will sell all or most of its leasing unit for as much as $US1 billion.
Kuala Lumpur-based AirAsia Berhad announced a second quarter profit of RM341.8m m($US84m) up from RM243m in the year ago quarter.
The group attributed the profit increase to a 23 per cent growth in revenue during the quarter, mainly due to an increase in aircraft operating lease income, and a 24 per cent reduction in fuel price to $US59 per barrel.
The number of passengers carried on the airline jumped 10 per cent to 6,454, 131 and load factor rose 7 percentage points to 87 per cent compared to the same period a year ago.
AirAsia has engaged RHB Investment Bank to oversee the sale of all or a substantial portion of its equity interest’’ in leasing arm AAC, which carries out the aircraft leasing business within the group and with third party airlines, or its business or assets.
RHB, Credit Suisse (Singapore) Limited and BNP Paribas are joint advisers for the transaction.
Group chief executive Tony Fernandes told Bloomberg Television proceeds from the sale may be used to reduce debt or pay a dividend.
"Depending on who the buyer is, and there seems to be tremendous interest, we'll likely divest all or maybe keep a minority interest for a period and sell out," Mr Fernandes said.
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