AirAsia (AK, Kuala Lumpur International) has secured dual-tranche private financing totaling USD 443 million to refurbish parked aircraft and refinance lease obligations, as stated in a release from its majority owner, Capital A, on August 22.
The financing includes USD 200 million from California-based Ares Management Corporation and Singapore’s Indies Capital Partners Pte. Ltd., both of which are alternative investment managers, designated for the refurbishment efforts. The remaining USD 243 million comes from aircraft lessors to address lease liabilities.
As per ch-aviation fleet data, AirAsia currently has 15 aircraft in storage, comprising nine A320-200s and six A320-200Ns. The lessors involved include Castlelake (three aircraft), Carlyle Aviation Partners (three), Nomura Babcock & Brown (three), Wings Capital Partners (two), CDB Aviation (two), Macquarie AirFinance (one), and one unidentified lessor.
Among its affiliate airlines, Indonesia AirAsia (QZ, Jakarta Soekarno-Hatta) has four aircraft in storage (one each from Aircastle and ICBC Financial Leasing, and two from Aviation Capital Group). Philippines AirAsia (Z2, Manila Ninoy Aquino International) has six stored aircraft (one from Aircastle, two from AerCap, and three from Horizon Aircraft Finance), while Thai AirAsia (FD, Bangkok Don Mueang) has one A320-200 leased from Avolon currently in storage.
“This revenue bond is timely in enhancing AirAsia’s financial standing and liquidity,” commented Bo Lingham, CEO of AirAsia Aviation Group. “In light of the rising travel demand, we will utilize this funding to expand and reactivate our fleet while refinancing lease liabilities to strengthen our balance sheet. We aim to reactivate ten aircraft in October, with an additional 15 planned for 2025.”
According to Bloomberg, the funding is structured as privately-placed bonds linked to revenue and is secured against the future sale of airline tickets.
Evercore Asia (Singapore) Pte. Ltd. served as the financial advisor to Capital A for this transaction, with international legal support from A&O Shearman and local legal advice from Christopher & Lee Ong.
