AirAsia Sells 25 Aircraft Assets Worth Almost IDR11.2trillion

AirAsia Sells 25 Aircraft Assets Worth Almost IDR11.2trillion
AirAsia' A320neo aircraft fleet. Image source: Airbus.

AVTEN - AirAsia Group Berhad (AAGB) via Asia Aviation Capital Limited/AACL (its indirect wholly-owned subsidiary) sells Merah Aviation assets, which will comprise 25 existing aircraft to be leased to AirAsia Berhad, to AS Air Lease Holdings 5T DAC (an entity indirectly controlled by Castlelake LP) in a deal valued at US$768million or almost IDR11.2trillion.

In addition, Castlelake will also buy four new aircraft which will be sent to AirAsia in 2019. In total, 29 aircraft (A320-200ceo and A320neo types) in the future will be leased back to AirAsia by Castlelake.

For AirAsia, the deal marks another move to monetize its assets, because they are trying to improve oneself into a company that focuses on digital assets.

"This transaction is part of AirAsia’s ongoing transformation into something more than an airline. We move towards becoming a travel technology company," said CEO AirAsia Grup, Tony Fernandes, Senin (12/24/2018).

The disposal of these aircraft, he continued, will not only unlock significant value but also bring us closer to our goal of being a truly digital company.

“Castlelake is pleased to support AirAsia as it pursues its strategic goals by offering full-service leasing and capital solutions,” said Evan Carruthers, Managing Partner at Castlelake.

In a filing with Bursa Malaysia that day, as quoted from The Star Online, AirAsia mentioned that AACL had signed an agreement for the disposal all of Merah Aviation Asset Holding Ltd shares to Castlelake.

Proceeds from the disposal, would mainly be for the repayment of existing debt and to defray estimated expenses for the proposed transaction.