AirAsia to buy aircraft engines for $1b

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engineMalaysia-based low-budget carrier AirAsia will reportedly sign a $1 billion engine deal with French-American airline engine maker CFM International, The Star reported on June 13.

The deal would be signed at the Paris Air Show from June 17 to 23 in the French capital, the report said.

CFM International is a joint venture between GE Aviation, a division of US engineering giant General Electric and Snecma, a division of French company Safran S.A, a multinational aircraft and  rocket engine, aerospace component and security firm.

AirAsia would buy 60 engines in addition to the 80 engines it bought in 2012 for its A320 aircraft in a deal worth $1.6 billion. The 60 are part of the 100 additional A320 aircraft the low cost airline had ordered last in December 2012. With that order AirAsia has 475 narrow body aircraft on its order list with Airbus.

The carrier’s long-haul arm, AirAsia X, is set for an IPO at the Bursa Malaysia on July 10 that is supposed to raise up to $370 million.

Meanwhile, news have been breaking that AirAsia may exit from its two-year old joint venture with All Nippon Airways in AirAsia Japan due to “differences of opinion within the management.”

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Reading Time: 1 minute

Malaysia-based low-budget carrier AirAsia will reportedly sign a $1 billion engine deal with French-American airline engine maker CFM International, The Star reported on June 13.

Reading Time: 1 minute

engineMalaysia-based low-budget carrier AirAsia will reportedly sign a $1 billion engine deal with French-American airline engine maker CFM International, The Star reported on June 13.

The deal would be signed at the Paris Air Show from June 17 to 23 in the French capital, the report said.

CFM International is a joint venture between GE Aviation, a division of US engineering giant General Electric and Snecma, a division of French company Safran S.A, a multinational aircraft and  rocket engine, aerospace component and security firm.

AirAsia would buy 60 engines in addition to the 80 engines it bought in 2012 for its A320 aircraft in a deal worth $1.6 billion. The 60 are part of the 100 additional A320 aircraft the low cost airline had ordered last in December 2012. With that order AirAsia has 475 narrow body aircraft on its order list with Airbus.

The carrier’s long-haul arm, AirAsia X, is set for an IPO at the Bursa Malaysia on July 10 that is supposed to raise up to $370 million.

Meanwhile, news have been breaking that AirAsia may exit from its two-year old joint venture with All Nippon Airways in AirAsia Japan due to “differences of opinion within the management.”

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