AirAsia mulls sale of aircraft leasing unit

Tony Fernandes' move to sell the aircraft leasing business could help AirAsia reduce debt and raise fresh capital to expand its network.

Asia’s biggest low cost airline, AirAsia, is exploring the sale of its aircraft leasing business as the highly-leveraged carrier moves to reduce its gearing and shift to an asset-light business model.

In a statement to Bursa Malaysia, Kuala Lumpur-headquartered AirAsia confirmed recent market speculation about the sale of Asia Aviation Capital AAC, confirming it was carrying out a strategic review of the aircraft leasing unit that would include divestment of a substantial portion of its interest in it.

Analysts said the potential sale of AAC could raise around RM4 billion $1 billion, equivalent to nearly half of AirAsia's current...

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