Airasia X defers A330neo deliveries

KUALA LUMPUR: Malaysian long-haul budget airline Airasia X would defer delivery of 78 Airbus SE A330neo planes and consider other changes to reduce its fleet, as the coronavirus outbreak adds pressure on the loss-making carrier.

Airasia X said it might sell two A330s that could fetch up to $100 million and return five others to lessors early, adding it was already in negotiations with lessors about a targeted 30% cut in lease rates.

The airline cancelled 600 flights for March, according to an investor presentation published after it reported a higher quarterly net loss. Airasia X flagged lower forward bookings and pressure on fares in the presentation.

The virus has deepened the challenges facing the airline and sister carrier Airasia Group Bhd, whose Chief Executive Tony Fernandes and Chairman Kamarudin Meranun have both stepped aside for at least two months amid investigations into a corruption scandal. Airbus was alleged to have paid a $50 million bribe for plane orders.

Brendan Sobie, a Singapore-based independent aviation analyst, said Airasia X was highly exposed to China and other markets in North Asia significantly impacted by the coronavirus but the carrier was also in a weak financial position prior to the crisis.

Airasia X shares fell by 5% on Friday to a record low after it posted a net loss of 95.8 million ringgit ($22.62 million) in the quarter ended Dec. 31, increasing from an 88.1 million ringgit loss a year ago.