An Irish leasing firm has entered into a $1 billion deal to acquire 54 Airbus narrow-body aircraft on lease to AirAsia.
The deal with Fly Leasing also gives the Dublin-based firm the option to acquire an addition 20 Airbus A320neo aircraft from the manufacturer next year.
The transaction is part of a larger acquisition under which Fly will acquire a total of 132 aircraft from the Malaysian budget carrier and its subsidiary Asia Aviation Capital, as well as options to acquire 50 A320neos, to be delivered in the future.
Fly Leasing chief executive, Colm Barrington, said: “We are thrilled to partner with one of Asia’s premier and fastest expanding airline groups.
“These investments will grow Fly’s fleet with the most attractive and newest generation of narrow-body aircraft on known lease and financing terms.
“This transaction is expected to drive high levels of stable, long-term profitability and cash flows at Fly for the benefit of our stakeholders.”
AirAsia chief executive, Tony Fernandes, added: “This is a perfect outcome to a strategy we started in 2004 and I’m thrilled at the execution of our long-term vision.
“We have now disposed most of our physical non-core assets and we are thrilled to be embarking on our new digital strategy, which will build a very valuable group of assets.”