AirAsia leases four previously MYAirline-owned planes: Bo Lingam

Group CEO says airline needs the capacity for next year, targeting pre-pandemic travelling levels

5:00 PM MYT

 

KUALA LUMPUR – Low-cost carrier AirAsia Bhd has leased four Airbus A320-200 aircraft previously operated by MYAirline Sdn Bhd.  

AirAsia Aviation Group Ltd group chief executive officer Bo Lingam said AirAsia had previously leased three of the aircraft before the Covid-19 pandemic from lessor AirCastle Ltd. They were subsequently returned to the lessor and MYAirline leased the aircraft from the lessor. 

“When MYAirline stopped operating, the lessor asked if we wanted these planes. We also needed the capacity for next year,” he told Bernama, adding that all the leasing processes have been completed to date. 

MYAirline suspended its operations on October 12, 2023, after operating less than a year due to financial pressure. The suspension is pending restructuring and recapitalisation.  

Of the four aircraft, he said two of the A320 will be flying on December 15 and 16, while the third will be flying in January next year. He did not specify the timeframe for the fourth plane. 

On next year’s outlook, Bo is confident to fully reactivate its fleet of 204, underpinned by attractive and good airfare as more countries offer visa-free entry.  

“We are hoping to get back to pre-pandemic level and all 204 aircraft will take to the sky by February next year. 

“We have a very good view of next year and we should surpass 2019’s (passenger level) soon,” he said.  

He also noted that AirAsia will have an additional nine new A321 with 240 seats next year. 

“There are no more A320 and all new aircraft will be the A321 from then on,” he clarified.  

He does not foresee any downside for aviation at the moment unless there is a sudden spike in fuel prices. He is also hoping for the ringgit to strengthen next year based on economists’ recent positive forecasts. 

Net profit for the airline industry is expected to reach US$25.7 billion in 2024, with a 2.7% profit margin, the International Air Transport Association (IATA) said recently (US$1=RM4.66). 

This represents a slight improvement over 2023 which is expected to show a US$23.3 billion net profit with a 2.6% net profit margin. 

IATA also said about 4.7 billion are expected to travel in 2024, a historic high exceeding the 2019 pre-pandemic level of 4.5 billion. – December 14, 2023

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