AirAsia’s indirect unit to sell Merah Aviation for RM3.22b

An AirAsia logo is pictured at the ticketing counter at Changi Airport in Singapore, December 29, 2014. — Reuters pic
An AirAsia logo is pictured at the ticketing counter at Changi Airport in , December 29, 2014. — Reuters pic

, Dec 24 — AirAsia Group Bhd’s indirect wholly-owned subsidiary, Asia Aviation Capital Ltd (AACL) is disposing of Merah Aviation Asset Holding Ltd to AS Air Lease Holdings 5T DAC, an entity indirectly controlled by Castlelake LP, for US$768 million (RM3.2 billion).

AirAsia, in a statement, said the parties entered into a share purchase agreement today.

In addition, Castlelake will also purchase from AACL four new A320-200ceo aircraft to be delivered in 2019.

It said 25 existing aircraft, comprising A320-200ceo and A320neo, under Merah Aviation, as well as the four new aircraft would be leased back to AirAsia Bhd and/or its affiliates.



AirAsia Group Chief Executive Officer Tan Sri Tony Fernandes said the disposal would unlock significant value to the group.

“Years ago, many analysts criticised us for having high gearing and owning assets. Now many understand why we did that. In a few years’ time, our digital strategy will be understood as well.” he added. — Bernama

Source: The Malay Mail Online





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