Monday, August 10, 2009

AirAsia defers delivery of eight Airbus A320

08 August 2009

KUALA LUMPUR -- Southeast Asia's biggest budget carrier AirAsia will defer delivery of eight Airbus A320 aircraft by four years to 2014 due to “infrastructural constraints” at Kuala Lumpur's airport.

“AirAsia foresees infrastructural constraints with the current airport facilities and until the new LCCT (low cost carrier terminal) is constructed,” the airline said in a statement late Thursday.

The plan to defer the aircraft delivery would allow AirAsia to avoid the costs associated with leaving aircraft idle, hence avoiding having to incur depreciation and interest expense without earning revenue, it said.

AirAsia said Airbus had agreed to the revised delivery schedule and “no penalties” would be imposed on the budget carrier.

“With the above deferment, the original delivery of 24 aircraft in 2010 shall be reduced to 16 aircraft,” it said.

AirAsia said it could exercise the right to postpone delivery of another eight aircraft in 2011 to 2014 if it informs Airbus before the end of October.

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