Ai­ra­sia says trans­fer of five air­craft in­com­plete as deals lapsed

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Ai­rA­sia Group Bhd, which is sell­ing its air­craft leas­ing busi­ness to BBAM Ltd Part­ner­ship, says the trans­fer of air­craft and air­craft en­gines un­der the deal has been com­pleted ex­cept for five air­craft.

In a fil­ing with Bursa Malaysia yes­ter­day, the low-cost air­line said the trans­fer of five air­craft was in­com­plete as the agree­ments have now lapsed.

The five air­craft are leased to third party air­lines with an es­ti­mated en­ter­prise value of US$173.67mil.

Ai­rA­sia said the trans­fer of the other air­craft and air­craft en­gines to BBAM had been com­pleted.

“The com­pany wishes to an­nounce that the trans­fers of air­craft and air­craft en­gines un­der the Heron­dell sale and pur­chase agree­ment, the In­cline B Avi­a­tion Ltd Part­ner­ship and Fly Leas­ing Ltd have al­ready been com­pleted ex­cept for five air­craft, which are leased to third-party air­lines,” Ai­rA­sia said.

In March last year, BBAM said it was ac­quir­ing Ai­rA­sia’s air­craft leas­ing busi­ness, Asia Avi­a­tion Cap­i­tal Ltd (AAC), for US$1.18bil (RM4.619bil) via its man­aged en­ti­ties, Heron­dell Ltd, In­cline B Avi­a­tion and Fly Leas­ing.

Fol­low­ing the an­nounce­ment of the deal, shares in Ai­rA­sia soared to RM4.60 apiece. At yes­ter­day’s close, shares in the com­pany in­creased two sen to RM3.

Through this deal, Ai­rA­sia is dis­pos­ing a to­tal of 84 air­craft and 14 air­craft en­gines by AAC to BBAM’s man­aged en­ti­ties. Fol­low­ing the sale, 79 air­craft and 14 en­gines will be leased back to Ai­rA­sia and its af­fil­i­ates for up to 12 years.

Ad­di­tion­ally, un­der the agree­ment, Ai­rA­sia will see more air­craft dis­pos­als mov­ing ahead, as the com­pany has en­tered into agree­ments with the same BBAM­man­aged en­ti­ties to sell 98 air­craft to be de­liv­ered in the fu­ture up un­til 2025.

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