Barclays funding AirAsia plane purchase
Filed Under (Business News) by Webmaster on 23-02-2009
Tagged Under : AirAsia, Baclays funding, plane
AIRASIA said Monday that British banking giant Barclays was funding its purchase of 15 new Airbus A320-200 aircraft, despite gloomy forecasts for the aviation industry.
“AirAsia… has mandated Barclays Capital, the investment banking division of Barclays PLC, to finance 15 of its new Airbus A320-200 aircraft,” AirAsia chief executive officer Tony Fernandes said in a statement.
Fernandes did not reveal the size of the deal, but AirAsia officials said the catalogue price of each A320 was about 60 million dollars, and that the financing covers 85 per cent of the purchase price.
Fernandes said that three aircraft had been delivered under the funding facility since the start of this year.
“This partnership between AirAsia and Barclays Capital is a testament of the confidence and trust that the global financial community has towards AirAsia’s prospects and potentials,” he said.
“We are very positive that we will carry through the global economic storm and emerge bigger and stronger.” A signing ceremony was held in London Monday to formalise the facility.
Fernandes said the deal would bring AirAsia’s total fleet to 85 aircraft by early 2010.
“This is crucial in ensuring that AirAsia meets its projected expansion growth,” he said.
AirAsia, which was launched in 2001 with just two aircraft, now services over 114 routes covering more than 64 destinations.
AirAsia became the world’s biggest customer for the Airbus A320-200 after placing an order for 175 aircraft in December 2007, with an option for 50 more.
Deliveries are expected to run until 2014. – AFP
