Exercise Of Purchase Options And Addition Purchase Options Of New Airbus A320 Aircraft By AirAsia Berhad
|Subject||EXERCISE OF PURCHASE OPTIONS AND ADDITION PURCHASE OPTIONS OF NEW AIRBUS A320 AIRCRAFT BY AIRASIA BERHAD|
|Contents||PLEASE REFER TO ATTACHMENT BELOW|
Further to the announcement made by AirAsia Berhad (“AirAsia” or “the Company”) on 9 January 2007, AirAsia is pleased to announce that the Company has exercised its Airbus A320 aircraft (“Aircraft”) purchase option for 25 Aircraft from its existing 50 Aircraft purchase option. This is pursuant to the original purchase agreement dated 11 March 2005 with Airbus S.A.S. (“Airbus”) as supplemented by the Additional Agreement dated 31 August 2006 and Supplemental Agreement dated 8 January 2007, whereby AirAsia has committed to a firm order of 150 Aircraft and a purchase option of 50 Aircraft.
AirAsia has also secured an additional purchase option for 25 Aircraft. The total number of Aircraft orders for the Company now stands at 225 Aircraft comprising 175 firm orders and 50 purchase options. The additional firm orders will enable AirAsia to guarantee capacity growth up to 2014.
The total Aircraft delivery schedule for firm orders is tabulated below.
|Number of Aircraft Delivery|
This transaction is a transaction in the ordinary course of business of AirAsia.
DETAILS OF PURCHASE RIGHTS OF 25 AIRCRAFT
The contract is worth approximately US$1.63 billion (based on list price) for the 25 Aircraft. Under the purchase agreement, Airbus will provide extensive support functions to AirAsia. The delivery for this aircraft order will commence on January 2013 with the 175th Aircraft to be delivered by October 2014.
RATIONALE FOR INCREASE IN FIRM ORDER
These additional Aircraft orders will enable AirAsia to guarantee capacity growth of 24 aircraft per year through the period from 2013 to 2014 at economic conditions similar to the other agreements.
FUNDING FOR THE AIRCRAFT PURCHASE
Similar to the 31 aircraft that AirAsia has taken delivery to-date, future deliveries will be funded by a combination of borrowings, the Company's internal reserves and cash generated by its operations.
FINANCIAL EFFECTS OF THE AIRCRAFT PURCHASE
The recent Aircraft purchase will have no material impact for the current earnings for the financial year ending 31 December 2008 but is expected to contribute positively to the future earnings of AirAsia.
Similarly,the Aircraft purchase is not expected to have an adverse effect on the net tangible assets and the issued and paid-up share capital of AirAsia for the current financial year.
DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTERESTS
None of the directors and/or major shareholders of the Company and persons connected to them, insofar as the existing directors and major shareholders are able to ascertain and are aware, has any interest, direct or indirect, in the proposed Aircraft Acquisition as mentioned above.
This announcement is dated 23 November, 2007.
|Company Name||AIRASIA BERHAD|
|Date Announced||23 Nov 2007|