AirAsia to lease two aircraft from Indonesia AirAsia Extra
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AirAsia Bhd has entered into a wet lease agreement with PT Indonesia AirAsia Extra (IAAX) to lease two Airbus A330 widebody aircraft for US$12.9mil (RM52.5mil).
In a filing with Bursa Malaysia on Tuesday, AirAsia said one aircraft would be leased from Sept 16, 2016 till March 15, 2017 for US$9.8mil (RM39.9mil).
The other’s lease would be from Oct 1, 2016 till Nov 30, 2016 for US$3.1mil (RM12.62mil), it said.
AirAsia said the leasing was due to operational requirements.
“The lease of the aircraft is in the form contained in the agreement which shall include the flight crew, all maintenance of the aircraft and insurance,” it said.
AirAsia said the agreement provided up to additional six crew sets daily to AirAsia’s manpower supply.
“Additionally, extra capacity from the A330s allows AirAsia to rationalise its network by reducing flight frequencies, which results in lesser crew requirement,” it said.
It said the additional capacity from A330s will also allow for AirAsia to overcome slot constraints in some airports as well as enable AirAsia to better manage its network.
“For routes with low load factor, AirAsia could reduce frequency, thus reducing fixed costs required to operate them. Whereas additional capacity could be added for routes with high load factor to capitalise on the high demand,” it said.
Questions & Answers
Q.Why is AirAsia leasing these particular aircraft?
Why is AirAsia leasing these particular aircraft?
AirAsia is leasing the two Airbus A330 widebody aircraft to meet operational requirements. The extra capacity will help them manage their network more effectively, reduce flight frequencies on some routes, and overcome slot constraints at certain airports.
Q.What is included in the wet lease agreement for the aircraft?
What is included in the wet lease agreement for the aircraft?
The wet lease agreement includes the provision of flight crew, all necessary maintenance for the aircraft, and insurance. It also provides up to an additional six crew sets daily to support AirAsia's existing manpower supply.
Q.How will the leased A330s help AirAsia manage its network?
How will the leased A330s help AirAsia manage its network?
The additional capacity from the A330s will allow AirAsia to rationalise its network by reducing flight frequencies where load factors are low, thereby cutting fixed costs. It also enables them to add capacity to high-demand routes.
Q.What are the specific lease durations and costs for each aircraft?
What are the specific lease durations and costs for each aircraft?
One aircraft is leased from 16th September 2016 until 15th March 2017 for US$9.8 million. The second aircraft's lease runs from 1st October 2016 until 30th November 2016, costing US$3.1 million.
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