Budget carrier AirAsia Bhd. is ordering 14 more Airbus A320ceo (current motor option) aircraft to meet strong demand in various markets, including the Philippines, Indonesia, and India.
At the International Paris Atmosphere Show on Thursday, Airbus announced that the Malaysia-based low-cost carrier signed an agreement to order the additional A320ceos. The contract will still need the acceptance of the AirAsia table.
The deal is highly valued at around $1. 4 billion at current list prices, although airlines usually get discounts from manufacturers.
Demand is very strong in AirAsia’s traditional countries, but now we have Philippines, [the] Thailand, and India doing extremely well. The robust demand has led us to expand our fleet, AirAsia Group CEO Tony Fernandes was quoted as saying in a statement.
Typically the 14 additional A320ceos will bring the total amount of aircraft from the A320 family ordered by AirAsia to 592. AirAsia continues to be the most significant airline customer for the Airbus single aisle product line.
At present, Airbus has delivered 171 A320ceos and A320neos to AirAsia, which uses the planes for the functions in Malaysia, India, Indonesia, Asia, and the Philippines.
“We still need to find more aircraft to broaden our regional reach and are actively sourcing from the leasing market. Typically the competitive environment is at its best, coupled with a stable oil price. With all the lowest cost in the world, AirAsia in back on aggressive growth, inches Mr. Fernandes said.
Thailand AirAsia chief executive officer Dexter M. Comendador said in an interview that the carrier is looking to end 2017 with 19 planes, as it programs to boost capacity and expand routes. At present, Philippines AirAsia has sixteen planes.
Earlier this week, Mr. Fernandes said he or she is hopeful the original open public offering for Philippines AirAsia would push through this year, in preparation for the group’s plan to combine its Southeast Asian units under one listed having company.
It’s the best year (for Philippines AirAsia) and we’re heading towards our IPO. I think a little of a management turn-around, better aircraft, understanding the market better, all those things have added [up], “” he told visiting Manila-based reporters at the sidelines of the Skytrax World Airline Awards on Tuesday.”
Asked for the timeline for the Philippine unit’s IPO, Mr. Fernandes replied, “hopefully this year. inch
In May, the AirAsia Group reported that the Philippine unit posted an operating profit of P400 million in the first quarter of 2017, as passenger count ros