Malaysia’s AirAsia aims to lease 15 extra planes to fulfil increased demand from China now that the country’s borders have been reopened, according to the CEO of the budget carrier’s parent firm Capital A.
“We’re so positive on expansion that we’re in talks with lessors right now to sign 15 more aircraft,” Tony Fernandes remarked on the sidelines of an event. “The fact that we’re talking about new planes indicates that things are returning.”
According to Fernandes, Capital A currently has three tailwinds: stronger Asian currencies, lower oil prices from their high, and China’s openness.
“With China’s openness, the ambiguity of routes has finally vanished… And there’s a clear road back to normalcy, to pre-Covid 2019,” he continued.
The 15 planes are in addition to the 326 planes currently on the company’s order book through 2030. AirAsia now has 150 planes in the air and intends to have all 204 of its planes back in operation by August.
Fernandes stated that the corporation was on schedule to finish restructuring activities and resolve its PN17, or “Practice Note 17” status by August. The restructure will unite AirAsia’s budget airline operations with AirAsia X, removing the aviation division from Capital A.
Fernandes believes this might pave the way for Capital A to break its other companies – logistics, aviation services, and digital – into independent listings.
The Malaysian market designated Capital A as a PN17 company in January 2022, a label given to financially troubled corporations that can be de-listed if they fail to regularise their finances within a certain time limit.
“The strategy is in place,” Fernandes stated. “I’m not convinced Capital A will exist in its current shape in the future.”
Capital A reported a lower third-quarter operating loss in 2018 compared to 2021 as travel demand increased.
Capital A shares have grown 17% since the beginning of the year, surpassing rivals such as Singapore Airlines, which has gained 7%, and Cathay Pacific Airways, which has declined 9%.
Info source : South China Morning Post