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KUALA LUMPUR, MALAYSIA -- Malaysian long-haul budget carrier AirAsia X Thursday confirmed it will raise 75 million dollars by selling a 20 per cent stake to private equity funds from Japan and Bahrain to fund the purchase of at least 25 new A330-300 Airbus aircraft.
"AirAsia X has executed an agreement to place a 20 per cent equity interest to the Manara Consortium, based in Bahrain, and Orix Corporation from Japan, for approximately 250 million ringgit (75 million dollars)," said CEO Azran Osman-Rani.
Azran said the investment will allow AirAsia X to expand its fleet with new generation aircraft and strengthen Malaysia's position as Southeast Asia's low-cost carrier hub.
"AirAsia has confirmed 15 A330s with 10 options. But we are looking to exercise soon (the 10 options)," he told AFP.
The entry of two new investors comes after British billionaire Richard Branson's Virgin Group took a 20 per cent stake in AirAsia X last August. Adeeb Ahmad, who represents the Manara Consortium on the AirAsia X board,
expressed his confidence in the venture, which Branson has vowed to pilot into
profitability.
"We have no doubt that the core team led by (AirAsia chief executive) Tony Fernandes and (his deputy) Kamarudin Meranum are best placed to make the yet untested long-haul, low-cost concept another exemplary success to emulate," he said.
AirAsia X has begun long-haul flights to Australia and China using one leased aircraft. AirAsia X, an affiliate of regional budget carrier AirAsia and Virgin Blue, was launched in January 2007. It has set it sights on flying to Japan, the Middle East and Europe.
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