Date
23 March 2017
AirAsia's leasing unit is a 'powerful cash generator', says Tony Fernandes. Photo: Reuters
AirAsia's leasing unit is a 'powerful cash generator', says Tony Fernandes. Photo: Reuters

AirAsia receives US$1 bln takeover offer for leasing unit

Asia’s largest budget airline, Malaysia-based AirAsia Bhd., has received a US$1 billion offer for its aircraft leasing unit, Bloomberg quoted chief executive Tony Fernandes as saying.

AirAsia intends to divest the business, Asia Aviation Capital Ltd., at some point, Fernandes told the news service Monday.

He said the offer needs to be discussed further with the board.

Fernandes was quoted as saying that the business was a “powerful cash generator”.

Reuters reported in October that AirAsia has been in talks with lessors, including cash-rich Chinese companies, to sell a stake in its leasing subsidiary.

Chinese companies are seeking to grow aggressively in the leasing industry, which provides about 40 percent of the planes used by airlines globally, Reuters said.

AirAsia said late last year it had received approaches from investors to co-invest in the leasing unit.

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