AirAsia X looks to Japan for finance
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Low cost carrier AirAsia X is launching a campaign to raise yen-denominated funds for the first time as it ushers in a spate of new aircraft deliveries next year.
According to Bloomberg, the carrier is in talks with Japanese firms to finance one or two aircraft to add to its fleet next year.
The company’s CEO Azran Osman-Rani, told an interviewer in Seoul that the move was aimed at spreading the risk involved in currency volatility.
“Yen is, of course, something we’re very interested in,” he explained. “That’s because 15% of our business is in Japan. We have yen receivables.”
After a public offering last June, the company raised US$299 million which has helped fund its expansion plan, which has seen it capitalise on the low cost market in Asia Pacific – the most profitable market of recent years according to the International Air Transport Association.
The carrier has plans to double its stake in key markets including China and Australia. It’s fleet will increase to 18 aircraft by 2013 and 25 by the end of 2014.
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