AirAsia plans 100 more orders for regional expansion

AirAsia Bhd, already sitting on the biggest Airbus A320 order backlog, said it was in talks for as many as 100 more planes as it expands operations across the region. The airline has held discussions with Airbus on an order for about 50 planes with 50 options, chief executive officer Tony Fernandes said in Tokyo yesterday. The board still needs to approve the plan and decide whether the aircraft will be bought or leased, he said. "We're definitely short of capacity," he said. "We're in a wonderful part of the world in Asia, where there is still a tremendous amount of growth, and we want to get as much of that growth as possible." Asia's largest budget operator may also accelerate fleet plans for its new venture in Japan, Fernandes said, as low-cost carriers win a greater share of the region's travel market. The airline, based in Sepang, outside Kuala Lumpur, has about 275 A320s on order, including the planned neo variant, which will feature new fuel-efficient engines. The new Japanese venture, which is part-owned by All Nippon Airways Co, is due to start flights from Tokyo's Narita airport in August. The unit may have 25 planes by the end of third year, Fernandes said. The carrier previously said the fleet may total about 30 by 2016. AirAsia, which also has operations in Thailand and Indonesia, took delivery of its 100th A320 plane last week. The carrier signed a deal for 200 A320neo planes last year. Airbus, based in Toulouse, France, plans to begin delivering A320neos in late 2015. The carrier rose 0.9 per cent to 3.57 ringgit (Dh4.14) before the Kuala Lumpur stock exchange's lunch time trading break. Thai affiliate, Asia Aviation Pcl, is set to begin trading in Bangkok today after its initial public offering. The Indonesian unit's planned share offering may slip to the first quarter of next year, Fernandes said.