KUALA LUMPUR: AirAsia X, the long-haul arm of Asia's biggest discount carrier, is set for new chapter of growth with an investment of US$500 million to lease six Airbus A330-300 aircraft scheduled for delivery between 2013 and 2014.
The company today signed a letter of intent with International Lease Finance Corporation (ILFC) for the lease of six aircraft on a 10-year lease term.
Chief Executive Officer Azran Osman-Rani said the six aircraft would be the same model as those that AirAsia X purchased directly from Airbus.
"We recorded 2.5 million passengers last year and with the leased aircraft that will provide about 66 per cent capacity, we foresee to carry seven million passengers in 2014," he told reporters after the signing ceremony.
AirAsia X's current fleet of 11 aircraft -- nine A330s and two-A340s, together with existing delivery orders from Airbus that would see the carrier growth develop with a total of seven deliveries each in 2013 and 2014, would result in a total of 25 aircraft.
"In 2013, we will receive four leased aircraft and three Airbus (totalling seven), while in 2014, it will be five Airbus and two leased aircraft.
"This is a major investment, major commitment, with the aim of being the dominant market leader in the low-cost long-haul segment," he added.
He said the leased aircraft would enable more frequencies to existing routes and increase more routes within the existing countries as there are so much of growth to be tapped.
ILFC, the world's largest independent aircraft lessor measured by number of owned aircraft, has a portfolio consisting over 1,000 owned or managed aircraft.
Meanwhile, Co-founder and Director of AirAsia X, Tan Sri Tony Fernandes said this partnership would further complement the AirAsia Group's long-term vision of developing its presence in key markets in Asia and strengthen the connectivity between long-haul and short-haul low-cost network.
On AirAsia X's listing, he said "internally AirAsia X is ready to list but when we press that button, there are many factors outside but it's imminent."
Commenting on the increase in oil price, he said the group is not worried about it as it would hurt other players more than AirAsia.
"Oil is not something we lose too much sleep about anymore as whatever the price is AirAsia has delivered a very good margin due to its good model.
"And as the model matures, then you have a lot more extra revenue, strong ancillary income model that comes through.
"Oil price shouldn't be something distracted. It should be seen as the competitive advantage," he explained.
Asked whether AirAsia X may resume European flights, he said "no" and was glad the carrier had the guts to pull out.
"Every airline that's going to Europe is struggling mainly because of big elephants there, Etihad, Qatar and Emirates airlines.
"So, it's tough for us to have low fares and make money," he said.
- Bernama
