Malaysia's AirAsia Says Leasing Unit Deal Should Be Finalised by March
By Liz Lee, Reuters | Dec. 13, 2017
Malaysia's AirAsia Bhd hopes to reach a deal on the sale of its aircraft leasing unit by March, its group chief executive said on Wednesday, as the budget carrier seeks funds to return to shareholders.
Tony Fernandes, who built AirAsia into the region's biggest budget airline from a two-plane operation a decade ago, has been looking to sell stakes in non-flying businesses to pay special dividends.
Talks have been underway for more than a year to sell a stake in the leasing unit, in a deal sources have valued at around US$900 million. Fernandes has said he would prefer AirAsia to keep a stake in the business rather than sell it entirely.
"Can't give you date, but it's moving very well," Fernandes said at a news conference, saying it should be announced by the time the airline reports its fourth-quarter results, usually at the end of February. "I am very optimistic."
In October, Fernandes said the leasing unit was likely to be sold by the end of December.
The budget carrier has also been looking for ways to boost revenue.
Fernandes, AirAsia's co-founder, last month said the airline was testing personalized baggage pricing and launching a travel money card, targeting a 22 percent rise in revenue per passenger from add-ons by the end of 2018.
On Wednesday, he appointed Riad Asmat as chief executive of the airline's Malaysia-based operations, as part of a series of management changes. Riad will assume the post on Jan. 10.
Aireen Omar, currently chief executive of AirAsia Bhd, will become deputy group chief executive for digital transformation and corporate services, the airline said.