Airasia ... Apr 09

It plans to borrow RM3 billion (US$822 million) next year to help pay for 24 new planes. The money is on top of the estimated RM2.1 billion already lined up for 14 planes this year (2009).

AirAsia plans to expand its fleet as the region’s economic growth fuels travel demand. Air travel in the Asia-Pacific region, excluding within China, may grow 6.2% a year on average until 2027.

AirAsia is also negotiating with Malaysia Airports Holdings Bhd., which operates the country’s airports, for lower charges including landing fees at a planned new low-cost terminal at Kuala Lumpur International Airport.

AirAsia X is looking at a capital-raising exercise via an initial public offering (IPO) or a private placement to raise funds for future aircraft purchases.

The airline wants to add the Airbus A350 XWB wide-body aircraft to its fleet but any firm order will only be made after the manufacturer is able to firm up delivery dates.
Due to its equity and intangibles value has increased, this opens up avenues for equity funding and, in the long term, an IPO or even a private placement is possible.

It will be when the equity markets turn around and this could be in 2010. Its equity value gives them more capital-raising capabilities.

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