AirAsia postpones 10 Airbus A320 deliveries for 2012

[flee 5]

KUALA LUMPUR, Feb 11 (Bernama) — AirAsia Bhd has signed an amendment agreement with Airbus for the revision of the delivery dates of 10 Airbus A320s originally scheduled for next year to 2015.

 

In a statement here today, AirAsia said with the deferment, the delivery of 24 aircraft in 2012 would be reduced to 14.

 

The number of deliveries in 2015 would be increased from nine aircraft to 19, it said.

 

It said a key commercial reason for the deferral of the 2012 Aircraft was to afford the company some flexibility to switch from its current order of the classic A320 to a new-generation A320 aircraft.

 

“The new generation planes are more fuel-efficient when such aircraft come into production in the near future.

 

“The deferral will also have a positive impact on the balance sheet as it will help maintain the company’s net gearing position to below two,” it said.

 

Statement to Bursa Malaysia:

 

Subject :

AirAsia Berhad

Deferment of the delivery of ten (10) Airbus A320 from the year 2012 to 2015

 

Contents :

AirAsia Berhad (“AirAsia” or “the Company”) wishes to announce that it has on 10th February 2011 signed an amendment agreement (“Amendment Agreement”) with Airbus S.A.S (“Airbus”) for the revision of the delivery dates of ten (10) Airbus A320 aircraft originally scheduled for delivery in 2012 to the year 2015.

 

1. Salient terms of the Amendment Agreement

 

a. Under a Purchase Agreement (of 11th March 2005) and a number of amendment agreements entered into between Airbus and AirAsia (collectively “the Purchase Agreement”), AirAsia has agreed to a firm order of 175 Airbus A320 aircraft which schedule of delivery runs from December 2005 to October 2014.

 

b. Under the latest Amendment Agreement the parties have agreed to defer the delivery schedule of ten (10) aircraft originally scheduled for delivery in 2012 (“2012 Aircraft”) to the year 2015.

 

c. With the above deferment, the delivery of 24 aircraft in 2012 shall be reduced to 14 aircraft.

 

d. The number of deliveries in 2015 will also be increased from 9 aircraft to 19 aircraft.

 

e. No penalties are payable by AirAsia in revising the delivery schedule of the 2012 Aircraft.

 

2. Rationale

 

A key commercial reason for the deferral of the 2012 Aircraft is to afford the Company some flexibility to switch from its current order of the classic A320 to a new generation A320 aircraft which is more fuel efficient when such aircraft come into production in the near future.

 

The deferral will also have a positive impact from the balance sheet perspective, as it will help to maintain the Company's net gearing position to below 2.

 

Despite the deferral, AirAsia will nevertheless be taking delivery of 14 aircraft in 2012. This will enable the Company to support the growth of its joint ventures in the Philippines as well as Vietnam while continuing to support existing affiliate airlines.

 

On the back of AirAsia very encouraging financial results in the last quarter, the focus of the Company is to consolidate its growth while creating growth in other regions. The deferment is expected to create a greater optimization of aircraft utilization in tandem with the growth in passenger capacity.

 

3. Directors’ and major shareholders’ interests

 

No directors and/or major shareholders of AirAsia and/or persons connected with them have any interest, whether directly or indirectly, in the Amendment Agreement.

 

4. Directors’ opinion

 

The Board having considered all the relevant factors in respect of the Amendment Agreement is of the opinion that entering into the Amendment Agreement is in the best interest of the Company.

 

5. Financial effect of the Amendment Agreement

 

The Amendment Agreement is not expected to have any material impact on the financial position of AirAsia for this current financial year.

 

6. Approval required

 

AirAsia does not require the approval of its shareholders or any authorities to enter into the Amendment Agreement.

 

7. Document available for inspection

 

The Amendment Agreement is available for inspection at the registered office of the Company at 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia during normal business days from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

 

This announcement is dated 11th February, 2011

 

[zeqa 1]

i wonder-how many a320 currently in Air asia fleet?

[flee 5]

At 31 Dec 2010

 

AK - 53

FD - 19

QZ - 18

 

Total - 90

 

More information here: http://www.malaysianwings.net/forum/index.php?showtopic=12195&view=findpost&p=272592

 

I believe QZ still has about 5 Boeing 733s left. But these will will be returned to the lessors once Bandung Airport's runway extension opens.

[BC Tam 2]

Refreshing to note absence of even a whisper about 'delay' in new LCCT, much less apportioning blame for deferred deliveries

[flee 5]

Refreshing to note absence of even a whisper about 'delay' in new LCCT, much less apportioning blame for deferred deliveries

The AK fleet only expanded by 1 aircraft between 2009 and 2010. The management has sent all the other new deliveries to FD and QZ. LCCT aircraft are also posted to other hubs like BKI. The management has solved the LCCT problem pro-actively and not waiting for MAB to speed up the LCCT construction.

 

They have already mentioned that 2012 will be for their Philippine and Vietnam ventures. So the LCCT problem is not relevant here.

[flee 5]

AirAsia signals A320neo interest after deferring deliveries

 

Malaysian budget carrier AirAsia has signalled interest in the Airbus A320neo by deferring delivery of a batch of A320s by three years.

 

The company says it has pushed back the delivery of 10 A320s from 2012 to 2015, stating that the decision will give it "some flexibility to switch" between the current A320 variant to a "new generation A320 which is more fuel efficient".

 

Its deferral pushes the delivery date of the aircraft closer to the planned introduction of the A320neo - a re-engined version of the baseline A320 - in 2016.

 

Under a purchase agreement in March 2005, which was subsequently amended, AirAsia has chalked up orders for 175 A320s.

 

But the airline has also previously deferred A320 deliveries, citing other reasons than a possible switch to the A320neo.

 

Last year it pushed back seven aircraft due in 2011 for reasons of "infrastructural constraints" at airports it serves, and issued the same concern when it deferred another 16 aircraft in 2009.

 

AirAsia states that, with the latest change, it will be reducing deliveries in 2012 to 14 aircraft rather than the planned 24. Deliveries in 2015 will increase from nine to 19 aircraft.

 

"No penalties are payable by AirAsia in revising the delivery schedule of the 2012 aircraft," the airline adds.

 

Source: http://www.flightglobal.com/articles/2011/02/11/353087/airasia-signals-a320neo-interest-after-deferring-deliveries.html

[Cire 0]

It was also earlier reported that the purchases was held back to enable the accountants to consolidate its books for the coming listing of Air AsiaX. It was also rumoured that TF would probably seek other adventures too.. Cld RY be lured to AAX??? wow...

[flee 5]

It was also earlier reported that the purchases was held back to enable the accountants to consolidate its books for the coming listing of Air AsiaX. It was also rumoured that TF would probably seek other adventures too.. Cld RY be lured to AAX??? wow...

AirAsia X is not a member of the AirAsia Group as they only hold 16% equity in them. So, do not confuse their finances with that of AirAsia. They licence the AirAsia branding and the AirAsia Group accounts for them as an investment.

[flee 5]

Deferred plane delivery healthy for AirAsia

 

PETALING JAYA: AirAsia Bhd's decision to defer the delivery of a batch of A320 aircraft is expected to relieve pressure on the balance sheet of the highly-geared low-cost carrier.

 

Market observers, who have largely expected the company to reschedule the delivery of the aircraft even before the announcement was made, explained that the move would help reduce AirAsia's net gearing and maintain it below the 2-time level next year.

 

AirAsia's relatively-high net gearing has always been a concern among some investors despite the company's strong growth over the years. As at end-September last year, AirAsia's net gearing stood at 2.02 time, down from 2.27 times as at end-June.

 

“The aircraft deferment reaffirmed our positive stance on the group, as it reflects a forward planning, ambitious-yet-prudent management team,” Affin Investment Bank wrote in its report.

 

 

“The lower number of aircraft obligations in 2012 will reduce capital expenditure burden and hence debt-funding requirement as well as lower interest expense,” it explained.

 

The investment bank added that as a result, it expected the carrier's net earnings to expand by 4.2% next year.

 

To recap, AirAsia last week announced that it had signed an amendment agreement with Airbus SAS to defer taking delivery of 10 A320s in 2012 to 2015 with no penalties payable.

 

The deferment was to give the group the flexibility to switch from its current order of classic A320 to new generation A320 aircraft, which is supposed to be more fuel-efficient.

 

AirAsia gained three sen yesterday to close at RM2.72.

 

“We are positive on the deferment as it will allow the group to optimise capacity with rising air travel demand while relieving pressure on its balance sheet,” Hwang-DBS said in its report.

 

Analysts said the move to delay delivery of its aircraft would also help AirAsia attain higher yields and load factors.

 

“With the advent of Firefly encroaching into AirAsia's market, the risk of capacity oversupply is real and cannot be taken lightly,” Maybank Investment Bank explained in its report, adding that slower capacity growth would help improve yields and load factors.

 

“The company's fundamentals remain positive despite the deferrals. Air travel demand remains robust, and AirAsia is leveraging on its strong brand with great effect,” Maybank Investment said.

 

“AirAsia's ability to fund new aircraft purchases and repay loans should no longer be a major concern as operating cashflows should strengthen on stronger earnings visibility,” Hwang-DBS said.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2011/2/15/business/8063010&sec=business