PETALING JAYA: AirAsia X Bhd, AirAsia’s long-haul affiliate, has placed a firm order to buy 55 new A330neo aircraft from Airbus for US$15.2bil (RM53.3bil).
This makes AirAsia X the single biggest A330 airline customer for Airbus with a total order for 91 aircraft. Deliveries of the latest batch of aircraft will start from 2018.
To reduce the financial impact arising from its aggressive fleet expansion drive, AirAsia X said it would use operating leases for all of its 2015 aircraft deliveries.
The strategy will enable the airline to reduce heavy up-front cash payment, helping it to keep its target of achieving positive free cash flow.
“There are no immediate term financial effects. The aircraft purchase is expected to contribute positively for the financial year immediately following the first year of its delivery and to the future earnings of the company,” it explained.
The order firms up its memorandum of understanding (MoU) for 50 A330neo signed during the Farnborough Air Show in July 2014 with an additional five aircraft.
The company also signed an engine purchase agreement with Rolls-Royce to supply the Rolls-Royce Trent 7000 engines for the A330neo aircraft, and Trent 700 engines for the A330ceo aircraft.
“This latest deal with Airbus will enable AirAsia X to consolidate its growth rate for 2015-2017 before ramping up deliveries with the new A330neo models with the latest Rolls-Royce Trent 7000 engine option series from 2018 onwards.” said AirAsia X co-founder and director Tan Sri Tony Fernandes in a statement.
The A330neo aircraft reduces fuel consumption by about 14% per seat and increases flight range up to 400 nautical miles. This range capability enables possible direct flights from Kuala Lumpur to Europe, according to the airline.
“The A330 has proven itself to be exactly the right aircraft for our business model, combining low operating costs, long range flying capability and high levels of comfort.
“We are extremely excited about the even greater levels of efficiency that will come with the A330neo, which will play a key role in enabling AirAsia X to maintain its position as the long haul low cost leader,” Fernandes said.
As at Dec 31, 2014, AirAsia X said the company would have taken delivery of 23 A330ceo aircraft, with 16 A330ceo aircraft from Airbus, six leased from International Lease Finance Corp and one from Ansett Worldwide Aviation (Labuan) Inc.
It expected the company’s total fleet size to reach 82 by the end of 2026, taking into account aircraft returned on completion of operating lease periods.
It added that the delivery of eight A330ceo aircraft for 2015 remained on schedule
