Kuala Lumpur, March 1- AirAsia plans to raise about US$120 million (RM394.02 million) this year by selling six of its aging aircraft of nine to 10 years and using the proceeds for future purchases, said group chief executive officer Tony Fernandes.
“We are beginning to sell our planes, which will generate significant cash, which will be used for future purchases,” The Financial Express quoted him as saying.
AirAsia currently has 138 aircraft (A320s) and plans to expand its fleet size to 170 in the coming years. It has ordered for a further 335 aircraft.
“Our first Neo (fuel-efficient Airbus) comes in 2016 and if you look at our asset disposal, on which we will share more information in the next month or so, you will see that on average we could raise up to US$200 million per year (from aircraft sales), which will be used to offset the purchases of the Neo,” Fernandes told analysts at a conference in Mumbai.
“The focus for me is improving margins, reducing cost and growing ancillary income which results in more cash. My focus this year is to really grow cash and we are looking at free cash of RM900 million,” he said.
However, the airline will not sell any planes in 2015 as it has only 17 aircraft deliveries coming during the year, reported the English daily.
“There will be zero (disposal in 2015) because we only have 17 planes coming in. We will sell six more planes in 2016 when the first of the Airbus Neos are delivered,” he said.
Fernandes also said there was a lot of interest coming from different quarters to buy the airline’s aging aircraft, which could result in AirAsia disposing of 10 or 12 aircraft instead of six.
The airline, which is looking to start its operations in India, plans to deploy six aircraft for its India operations from its current fleet, the report added.
– Bernama
