AirAsia To Sell 11 Aircraft, Sales Proceed Worth RM1 Billion

[flee 5]

KUALA LUMPUR, March 20 (Bernama) -- AirAsia Bhd will sell 11 aircraft, worth US$271 million (RM252.56 million), says Group Chief Executive Officer Tan Sri Tony Fernandes.

"There is some blessing in weaker currencies. Our ownership of aircraft is now paying off. We (are) selling 11 aircraft and leasing them back," he said on Twitter, the micro-blogging site.

He said gross proceeds from the sale would amount to US$271 million (RM252.56 million), while profits would accrue to US$45 million (RM41.94 million).

"Its a good piece of business," he said.

Airasia has 150 aircraft worth US$2 billion (RM7.39 billion).

He quashed talk that the airline was looking to raise equity.

"There is talk we are looking to raise equity. Completey wrong. At our share price why would we? Plus, we don't need cash. Cash is very strong with operational cash being very positive," he twitted.

Recently, AirAsia announced that it was reducing its stake in an online travel, agency AAE Travel Pte Ltd (AAE), from 50 per cent to 25 per cent.

It sold the 25 per cent shares to Expedia Inc for US$86.25 million (about RM318.75 million), gaining US$78.76 million (RM291 million) from the disposal.

Fernandes also said AirAsia's share price was the most undervalued share of all airlines in the world of matured airlines.

At lunch break, AirAsia's share price stood at RM2.22, down one sen.

[Suzanne Goh 0]

2011 Model A320, solid red, full automatic, CBU made in france. European spec. Sometimes lady driven. Accident free, full service history. Road tax and insurance not included. Unmodified. 50 million negotiable. Call Tony 012-2xxxxxxx.

[S V Choong 4]

2011 Model A320, solid red, full automatic, CBU made in france. European spec. Sometimes lady driven. Accident free, full service history. Road tax and insurance not included. Unmodified. 50 million negotiable. Call Tony 012-2xxxxxxx.

 

[Benjamin Ho 0]

Got to add these to the advert:

"CVT transmission, left and right hand drivable, electronic parking brake"

 

add more below...

[Alif A. F. 0]

 

He said gross proceeds from the sale would amount to US$271 million (RM252.56 million), while profits would accrue to US$45 million (RM41.94 million).

 

With USD to MYR exchange rate almost touching RM3.80, kindly enlighten me on this.

 

 

2011 Model A320, solid red, full automatic, CBU made in france. European spec. Sometimes lady driven. Accident free, full service history. Road tax and insurance not included. Unmodified. 50 million negotiable. Call Tony 012-2xxxxxxx.

Hahahaha, but I thought A320 is made in Germany (and also some are made in China too).

Edited March 20, 2015 by Alif A. F.

[Suzanne Goh 0]

 

Hahahaha, but I thought A320 is made in Germany (and also some are made in China too).

 

Wah Germany. Lagi Bagus.

 

*Germany Spec. View to appreciate. Low Mileage. Town Driving only (furthest is Chennai). 27,XXX,XXX per unit. Negotiable. High Trade in given! Call Mr. Tony now!

[flee 5]

With USD to MYR exchange rate almost touching RM3.80, kindly enlighten me on this.

When they bought the aircraft, they paid less as exchange rate was lower then...

[Suzanne Goh 0]

When they bought the aircraft, they paid less as exchange rate was lower then...

 

I think he's referring to the VERY low exchange rate of roughly 1 USD = 1RM quoted in the article

[flee 5]

I think he's referring to the VERY low exchange rate of roughly 1 USD = 1RM quoted in the article

That is Bernama's contribution to the kitty!

[Waiping 12]

 

Wah Germany. Lagi Bagus.

 

*Germany Spec. View to appreciate. Low Mileage. Town Driving only (furthest is Chennai). 27,XXX,XXX per unit. Negotiable. High Trade in given! Call Mr. Tony now!

 

Volkswagen or BMW quality? Miles of difference tu...

[BC Tam 2]

..... Road tax and insurance not included

JPJ teruk sangat lah - even aeroplanes kena road tax

 

Pieter

teruk sangat = terror (local colloquialism)

lah = meaningless expression at end of sentence, much like bah here in Sabah (you know it's in our culture when it's 60% of our state's name )

kena = afflicted, victimized, imposed upon

 

[S V Choong 4]

JPJ teruk sangat lah - even aeroplanes kena road tax

 

Pieter

teruk sangat = terror (local colloquialism)

lah = meaningless expression at end of sentence, much like bah here in Sabah (you know it's in our culture when it's 60% of our state's name )

kena = afflicted, victimized, imposed upon

 

 

Yeah of course, they need to run on the runways and taxiways.

 

Add autopilot and fly-by-wire to the list of options

[BC Tam 2]

Yeah of course, they need to run on the runways and taxiways.

So why are they not called called roads to justify road tax

[Suzanne Goh 0]

So why are they not called called roads to justify road tax

 

Don't give them ideas.

 

Otherwise there'll be a touch n go/ smart tag lane at Taxiway A11 turning onto 32R (most expensive). A6 turning onto 32R (cheaper) .

 

Maybe uncle tony don't wanna pay for touch n go cards and smart tag. So must prepare lorong tunai also.

 

Knowing uncle tony he'll go for the cheapest (A1 onto 32R... tora 0.00)

Edited March 20, 2015 by Suzanne Goh

[S V Choong 4]

 

Don't give them ideas.

 

Otherwise there'll be a touch n go/ smart tag lane at Taxiway A11 turning onto 32R (most expensive). A6 turning onto 32R (cheaper) .

 

Maybe uncle tony don't wanna pay for touch n go cards and smart tag. So must prepare lorong tunai also.

 

Knowing uncle tony he'll go for the cheapest (A1 onto 32R... tora 0.00)

 

Haha... true!!

 

Took Air Asia last month... they always taxi with one engine and then start the engine when it gets near exit A1. Guess Uncle Tony can claim low mileage on the engines while saving substantially on the taxi-tollway.

[Adrian M 0]

Not just AirAsia, quite a few airlines (eg: flybe) do practice taxing with one engine before take off / after landing. Nowadays, fuel cost high or low, if you can save a penny, save it.

 

Haha... true!!

 

Took Air Asia last month... they always taxi with one engine and then start the engine when it gets near exit A1. Guess Uncle Tony can claim low mileage on the engines while saving substantially on the taxi-tollway.

Edited March 21, 2015 by Adrian M

[flee 5]

Yes, and they are already developing electric motors for aircraft undercarriage so that they can taxi without using the main engines.

[Mohd Firdaus Bolong 0]

Wonder how they can get buyers since a320 now floods the market not including those available for lease.

Edited March 21, 2015 by Mohd Firdaus Bolong

[flee 5]

Wonder how they can get buyers since a320 now floods the market not including those available for lease.

The aircraft is sold to leasing companies - they are not sold to other airlines. Its a sale and leaseback deal.

[Mohd Azizul Ramli 2]

Wonder how they can get buyers since a320 now floods the market not including those available for lease.

 

They will sold the aircraft and they will lease it back themselves. They are they seller and they are also in your context, the buyer.

 

By doing this:

 

Their assets will decrease in line with the book value of the 11 aircraft BUT they will be able to report a higher profit because the depreciation cost will decrease by the equivalent amount of that 11 aircraft. This is on top of the RM1 billion proceeds from the sales of the 11 aircraft. They will definitely be reporting a big profit from the asset disposal alone plus probably some profit from forex gain.