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Malaysia's AirAsia Inks Airbus Deal to Stay Ahead of Competition
Malaysian budget carrier AirAsia has inked a contract to buy 60 new Airbus aircraft, with an option to purchase another 40 A320 jets as part of its regional expansion, a report said.
With the order and option commitment, AirAsia in a statement to Bernama news agency said it had become the single largest customer for Airbus in the Asia-Pacific region.
The airline in December said it would buy 40 Airbus aircraft and exercise an option to buy another 40 A320 jets to maintain its position as Asia's leading budget airline. In February, it said it would buy an additional 20 new aircraft.
AirAsia said it decided to increase the Airbus order after the rollout and the success of its Indonesian operations, AWAIR International (AWAIR).
"Within three months of its operations, AWAIR has carried over 120,000 guests and introduced flights to five domestic destinations in Indonesia," it said.
The new A320 jet will completely replace its current fleet of 28 single aisle, 148-seat Boeing 737-300s. Delivery of the first A320 aircraft will begin late this year and continue through until 2011, the company said.
It will operate a mixed fleet during the transition period, it added.
Launched as a budget carrier in December 2001 with just two aircraft, AirAsia has defied the sceptics to become a significant player in the air industry and has been imitated by startled national carriers along with a host of new low-cost entrants.
AirAsia currently operates in Malaysia, Thailand, Indonesia, the Philippines and Macau. It will become the first no-frills foreign airline to fly to China next month with daily services between Bangkok and the southeastern Chinese city of Xiamen.
Kuala Lumpur 27/03/2005
