AirAsia exercises purchase options and secures additional A320 purchase options
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Southeast Asia,
AirAsia
(CAPA FREE) AirAsia announced plans to exercise A320 purchase option for 25 A320s, from its existing 50 A320 purchase options. AirAsia has already committed to a firm order of 150 A320s and a purchase option of 50 aircraft.
AirAsia has also secured an additional purchase option for 25 A320s. The total number of A320 orders for AirAsia now stands at 225 A320s, comprising 175 firm orders and 50 purchase options. The additional firm orders will enable AirAsia to guarantee capacity growth up to 2014.
The contract is worth approximately USD1.63 billion (based on list price) for the 25 A320 aircraft. Under the purchase agreement, Airbus will provide extensive support functions to AirAsia. The delivery for this aircraft order will commence in Jan-13, with the 175th aircraft to be delivered by Oct-14.
The additional A320 orders will enable AirAsia to guarantee capacity growth of 24 aircraft per year through the period from 2013 to 2014 at economic conditions similar to the other agreements.
Similar to the 31 aircraft that AirAsia has taken delivery to-date, future deliveries will be funded by a combination of borrowings, the airline’s internal reserves and cash generated by its operations.
The recent A320 purchase will have no material impact for the current earnings for the financial year ending 31-Dec-08, but is expected to contribute positively to the future earnings of AirAsia. Similarly, the aircraft purchase is not expected to have an adverse effect on the net tangible assets and the issued and paid-up share capital of AirAsia for the current financial year.
Date posted: 26-Nov-07
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AirAsia exercises purchase options and secures additional A320 purchase options 
