The new order consist of 36 A320s with Current Engine Option and 64 A320s with New Engine Option
Asia’s leading low-cost carrier AirAsia today said it has confirmed another 100 Airbus A320. The airline had ordered in total 475 single-aisle aircraft from Airbus. The added aircraft will support the company's expansion into new markets, including India.
The new order consist of 36 A320s with the Current Engine Option (CEO) and 64 A320s with the New Engine Option (NEO) to accelerate its growth in its core markets Malaysia, Thailand & Indonesia followed by its new markets Japan and the Philippines.
Altogether, the carrier has now ordered 475 single aisle aircraft from Airbus, comprising 264 A320neo and 211 A320ceo. Over 100 aircraft have already been delivered to the airline and this additional purchase will see AirAsia’s aircraft deliveries continue until year 2021, according to a company's statement.
Tan Sri Tony Fernandes, Group Chief Executive Officer of AirAsia was quoted saying the company has three gold mines in Malaysia, Thailand and Indonesia. On the other hand, Philippines and Japan have enormous potential growth. With these added aircraft, it goes in-line with our strategy to further build our already extensive network through new routes and added frequencies and allow AirAsia to maintain its market leadership and dominance especially in Malaysia and Thailand.
In Malaysia, AirAsia continued its growth trajectory together with increased margins, load factor and revenue per available seat kilometre.
“The added aircraft will for sure catapult them to grow its dominance domestically and internationally into new big markets such as China and India,” the statement said.
The additional number of delivery slots for the 36 newly-purchased Airbus A320 CEOs will be up to year 2016, with two to be delivered in 2013; four in 2014; 22 in year 2015 and eight more in year 2016. The remaining 64 Airbus A320 NEOs will be delivered beginning year 2017 with eight deliveries; 14 in 2018, 15 in 2019; 14 in 2020 and 13 more in 2021.
The deliveries for the existing 200 Airbus A320neos purchased last year will still be from year 2016 up to year 2026. As part of the purchase agreement, AirAsia will also have the option for another 100 aircraft consisting of 50 Airbus A320 NEO and 50 A321 NEO.
Tan Sri Tony Fernandes further said, we have seen the likes of low-cost carrier such Ryanair and EasyJet dominating the European Skies and Southwest in the United States. Their first mover advantage, low cost mantra and discipline business model has allowed them to be a market leader in their own respective markets.
“AirAsia possess those three attributes and we are excited to be in a market of over 3.2 billion people, hence we are confident all this added capacity will allow us to continue to dominate Asean and springboard our expansion into North Asia, China and India in short to medium term,” he added.
Budget-carrier SpiceJet today said it has raised Rs 126.5 crore through issue of securities to promoter Kalanithi Maran.