AirAsia Group Berhad has, via Asia Aviation Capital Limited (AACL),
its indirect wholly-owned subsidiary, entered into agreements to
sell Merah Aviation Asset Holding Limited, which
will comprise 25 existing aircraft to be leased to AirAsia Berhad,
to AS Air Lease Holdings 5T DAC, an entity indirectly controlled
by Castlelake LP in a deal valued at US$768 million.
addition to the sale of shares of Merah Aviation, Castlelake will
also purchase from AACL a total of 4 new aircraft to be delivered
The 25 existing aircraft (A320-200ceo and A320neo)
under Merah Aviation, as well as the 4 new aircraft to be
delivered (A320-200ceo), will be leased back to AirAsia Berhad
and/or its affiliates.
The transaction is subject to the
approval of AirAsia’s shareholders and other relevant customary
closing conditions, and is expected to be completed in the second
quarter of 2019.
CEO Tony Fernandes said, “This transaction is part of AirAsia’s
ongoing transformation into something more than an airline. As we
move towards becoming a travel technology company, the disposal of these aircraft will not only unlock significant value but also
bring us closer to our goal of being a truly digital company.
Years ago, many analysts criticised us for having high gearing and
owning assets. Now many understand why we did that. In a few
years, our digital strategy will be understood as well.”
specializes in providing creative, flexible capital solutions for
its airline partners. Since its inception in 2005, Castlelake has
invested in and managed more than 500 aircraft on behalf of its
funds. With the closing of this transaction, Castlelake’s current
fleet will comprise more than 250 aircraft.
is pleased to support AirAsia as it pursues its strategic goals by
offering full-service leasing and capital solutions,” said Evan Carruthers, Managing Partner at Castlelake.