AirAsia Berhad has agreed to sell its aircraft leasing operations for $1.18 billion to BBAM Limited Partnership (BBAM), one of the world’s largest dedicated managers of investments in commercial jet aircraft.
 
The sale gives Asia Aviation Capital, a wholly owned subsidiary of AirAsia Berhad, an enterprise value of $2.85 billion, AirAsia said in a statement.
 
Under the terms of the agreements, Fly Leasing Limited (FLY), Incline B Aviation Limited Partnership (Incline) and Nomura Babcock and Brown (NBB) will acquire a portfolio of 84 aircraft and 14 engines of which 79 Aircraft and 14 engines will be leased back to AirAsia and its affiliates.

FLY and Incline have also entered into agreements to acquire 48 aircraft to be delivered to AirAsia Berhad and an option to acquire a further 50 aircraft to be delivered.
 
As a result of the sale, AirAsia Berhad is expected to recognise a gain of approximately RM967.1 million ($246.3 million).
 
AirAsia Group CEO, Tony Fernandes, said, “The AirAsia Group is delighted to begin this new, long-term partnership with Steve and the rest of the team at BBAM and FLY. Steve had the vision and courage to take over BBAM and build a very respectable leasing business with many great professionals. In many ways, their DNA is similar to ours and that attracted us to this partnership. We look forward to working together for many years to come.”
 
BBAM CEO Steve Zissis said: “Tony and his team have built an incredible business at AirAsia and we feel fortunate in having this opportunity to build a long-term partnership with an organization of this calibre.”
 
Credit Suisse, BNP Paribas and RHB are acting as joint financial advisors, and Milbank and ZICO are acting as counsels to AirAsia Berhad. - TradeArabia News Service