Bursa Filings
Exercise Options For 40 Airbus A320 Aircraft And Addition Of 30 Options
|
Type |
Announcement |
| Subject | EXERCISE OPTIONS FOR 40 AIRBUS A320 AIRCRAFT AND ADDITION OF 30 OPTIONS BY AIRASIA BERHAD |
Contents :
AirAsia Berhad ("AirAsia" or "the Company") is pleased to announce that further to the purchase agreement dated 25 March 2005 with Airbus S.A.S ("Airbus") for 60 firm orders of Airbus A320 Aircraft ("Aircraft") with options to acquire up to further 40 Aircraft, the Company has now entered into a Memorandum of Understanding with Airbus to exercise its options to purchase 40 Aircraft with options to acquire up to a further 30 Aircraft. In total, this will extend to 100 firm orders with options to acquire up to a further 30 Aircraft.
DETAILS OF THE PURCHASE AGREEMENT
The contract will be worth approximately US$2.6 billion (based on list price) for the 40 Aircraft. Under the memorandum, Airbus will provide extensive support functions to AirAsia. These include pre-delivery support, training for pilots, cabin crew, engineers and maintenance personnel. The delivery schedule for this aircraft order will commence on March 2009 and the remaining 39 aircraft will be delivered over a two year span.
RATIONALE FOR INCREASE IN FIRM ORDER
The additional 40 Aircraft will be employed to meet AirAsia's rapid expansion plan and to replace the Boeing 737-300 that will be returned to its lessor upon expiry of its leases. This extension of order secures AirAsia's fleet requirement up till 2012 and lock-in the benefits of the original agreement.
FINANCING THE PURCHASES
The funding of the aircraft purchase will be mainly from borrowings. AirAsia is undergoing discussions with various financial institutions and credit agencies.
DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTERESTS
None of the directors and/or major shareholders of the Company and persons connected to them, insofar as the existing directors and major shareholders are able to ascertain and are aware, has any interest, direct or indirect in the proposed Aircraft Acquisition as mentioned above.
This announcement is dated 20 July 2006.
Announcement Info
| Company Name | AIRASIA BERHAD |
| Stock Name | AIRASIA |
| Date Announced | 20 Jul 2006 |
| Category | General Announcement |
| Reference No | CM-060720-61298 |