AirAsia Orders 14 More Current-Generation Airbus Jets
June 22 2017 - 4:30AM
Dow Jones News
By Gaurav Raghuvanshi
Malaysian discount carrier AirAsia Bhd. (5099.KU) Thursday
ordered 14 more of an outgoing model of Airbus SE (AIR.FR) jets
after its network requirements grew faster than its fleet.
AirAsia's order is for 14 A320ceo jets, which are already
beginning to be replaced by the latest generation A320neo, or new
engine option, jets by airlines. With the latest order, AirAsia has
592 Airbus A320 family aircraft on order, of which 171 A320ceo and
eight A320neo jets have been delivered to the airline.
The latest order is valued at US$1.3 billion at list prices, but
airlines typically extract large discounts from manufacturers,
especially for an aircraft that is near the end of its production
cycle.
"Demand is very strong in AirAsia's traditional countries, but
now we have Indonesia, Philippines and India doing extremely well,"
said Tony Fernandes, AirAsia's group chief executive.
AirAsia is "back on aggressive growth" and still needs to find
more planes, including from leasing firms, Mr. Fernandes said.
Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com
(END) Dow Jones Newswires
June 22, 2017 04:15 ET (08:15 GMT)
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