AirAsia Orders 14 More Current-Generation Airbus Jets

By Gaurav Raghuvanshi Features Dow Jones Newswires

Malaysian discount carrier AirAsia Bhd. (5099.KU) Thursday ordered 14 more of an outgoing model of Airbus SE (AIR.FR) jets after its network requirements grew faster than its fleet.

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AirAsia's order is for 14 A320ceo jets, which are already beginning to be replaced by the latest generation A320neo, or new engine option, jets by airlines. With the latest order, AirAsia has 592 Airbus A320 family aircraft on order, of which 171 A320ceo and eight A320neo jets have been delivered to the airline.

The latest order is valued at US$1.3 billion at list prices, but airlines typically extract large discounts from manufacturers, especially for an aircraft that is near the end of its production cycle.

"Demand is very strong in AirAsia's traditional countries, but now we have Indonesia, Philippines and India doing extremely well," said Tony Fernandes, AirAsia's group chief executive.

AirAsia is "back on aggressive growth" and still needs to find more planes, including from leasing firms, Mr. Fernandes said.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

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(END) Dow Jones Newswires

June 22, 2017 04:15 ET (08:15 GMT)