Asian airlines eye stake sales

AirAsia X, the Malaysia-based long-haul budget carrier set for launch next month, has been approached by several private equity funds interested in taking a 20 per cent stake, the company said Wednesday.
AirAsia X is raising funds to finance its purchase of new aircraft, with an initial order of 15 Airbus A330-300 passenger jets valued at nearly $3bn at list price. It may order up to 20 Airbus A350 aircraft later as its route network expands.
The airline will be launched in early November with initial service from Kuala Lumpur to Australia’s Gold Coast in Queensland. It is planning to add routes to China, India, the Middle East and Europe – including to London or Manchester in the UK.
Tony Fernandes, founder of AirAsia and AirAsia X, would not disclose the identity of the private equity funds but a company official said the airline was evaluating the competing bids.
03/10/07 John Burton/Raphael Minder/Financial Times, UK

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Categories: Foreign Oct 2007