AirAsia X rises 5.33% on Airbus purchase
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AirAsia X Bhd’s share price rose as much as 5.33% to 37.5 sen on early trade after the airline confirmed its order of 100 Airbus A330neo widebody aircraft.
At 12.01 pm, the stock was trading at 37.5 sen with 31.62 million shares done.
Yesterday, AirAsia Group CEO and AirAsia X co-group CEO Tan Sri Tony Fernandes said that the group was in discussions with Airbus for two years and was looking to cancel the order before reaffirming and increasing the order, after reviewing AirAsia X’s model over the last one year.
“We got close with Boeing, they ran a good campaign. It was a close fight. Until a week ago, I didn’t really know which way we were swinging … but I’m confident we chose the right plane for us,” he said.
The order for the 100 aircraft is worth US$30 billion (RM121.8 billion) at list prices.
Fernandes said funding sources for the order include sale and leaseback, leasing capital and debt capital but he declined to reveal the contract value of the order.
Questions & Answers
Q.What was the total list price value of AirAsia X's order for the 100 Airbus A330neo aircraft?
What was the total list price value of AirAsia X's order for the 100 Airbus A330neo aircraft?
The order for the 100 aircraft was worth US$30 billion (RM121.8 billion) at list prices. However, the exact contract value was not revealed by the airline's CEO, Tan Sri Tony Fernandes.
Q.How long had AirAsia Group been discussing this order with Airbus before it was confirmed?
How long had AirAsia Group been discussing this order with Airbus before it was confirmed?
AirAsia Group had been in discussions with Airbus for two years regarding the aircraft order. The group initially considered cancelling it before reaffirming and increasing the number of planes ordered.
Q.What funding methods did Tan Sri Tony Fernandes mention for the large aircraft order?
What funding methods did Tan Sri Tony Fernandes mention for the large aircraft order?
Fernandes stated that funding for the order would come from a combination of sources. These include sale and leaseback arrangements, leasing capital, and debt capital to finance the purchase of the aircraft.
Q.Why did AirAsia X choose Airbus despite being close to a deal with Boeing?
Why did AirAsia X choose Airbus despite being close to a deal with Boeing?
The decision came after reviewing AirAsia X’s model over the past year. Fernandes mentioned it was a close fight, and they didn't know which way they were swinging until a week before confirming the Airbus choice.
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