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AirAsia to sell off leasing arm in early-2017; plans two IPOs

The AirAsia Group says it is receiving bids for its leasing arm, Asia Aviation Capital, and expects to sell off the unit next year.

Group chief executive Tony Fernandes says bids are coming in for the lessor, worth approximately $1 billion, and that he expects the sale to take place in early 2017.

In addition, the group will go to the markets with two potential Initial Public Offerings – its flight crew training centre AirAsia Academy on Bursa Malaysia, and Asean operations holding firm ASEAN Holding Co on the Hong Kong stock exchange, he adds.

Fernandes says these moves are part of the group's plan "to streamline the business and dispose of non-core businesses". He made the comments with the release of the airline's third quarter results.

Contacted separately, however, AirAsia says it will first list Indonesia AirAsia and Philippines AirAsia "by next year", before listing ASEAN Holding Co.

AirAsia turned in a third quarter pre-tax profit of MYR473.7 million ($107 million), turning around a similarly sized loss at the same period last year.

The results include that of Asia Aviation Capital, which more than doubled its revenue from the same quarter last year to $66 million. This helped generate a pre-tax profit of $13 million for the period, up on $2 million.

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