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AirAsia sells aircraft portfolio for $1.18 billion

Staff Writer |
AirAsia, Malaysia's flagship budget airline, said it has agreed to sell its aircraft leasing operations for $1.18 billion to firms managed by BBAM Limited Partnership.

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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.

Fly Leasing, Incline B Aviation Partnership and Nomura Babcock and Brown 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.

AirAsia is expected to recognise a gain of approximately 967.1 million ringgit ($246 million) as a result of the leasing unit disposal, the statement said.

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