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AirAsia to buy 25 Airbus

Saturday 02/09/2017 - Source: The Daily Star


Southeast Asia's largest low cost carrier AirAsia will order 25 Airbus A320s to meet passenger demand, officials said Friday after announcing plans to launch a new budget airline in Vietnam.

"We will need another 25 A320s, we will make an announcement in the next two weeks to increase our A320 fleet," Chief Executive Tony Fernandes told AFP, citing increased passengers and new routes.

Officials estimate the purchase cost to be around 1.6 billion dollars based on the list price of the model.

Malaysia's AirAsia, which on Thursday posted a 41.5 percent rise in fourth quarter profits, also said they will team up with the state-owned Vietnam Shipbuilding Industry Corporation (Vinashin) to form Vina AirAsia in a 30-million-dollar deal.

"We have signed a Memorandum of Understanding with Vinashin today (Friday) to form Vina AirAsia," Fernandes said.

"Vietnam, with a pro-business leadership and a 84-million population, is a fertile place for AirAsia to expand its business. We are seeing a tourism boom and we want to be part of it," he added.

A contract will be formally signed on September 20, Fernandes told AFP, and Vina AirAsia planned to begin flying in July 2018, with possible routes to southern China from its hub in Hanoi.

Pham Thanh Binh, chairman and chief executive officer of Vinashin, told AFP that the company was excited to be forming a partnership with AirAsia.

"We will be the first budget carrier in Vietnam," he said.


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