KUALA LUMPUR (BLOOMBERG) - AirAsia Bhd expects to sell its aircraft-leasing unit as early as December as the largest customer for Airbus Group's single-aisle jets aims to net as much as US$1 billion from the transaction and pare debt.
Proceeds from the sale may be used to reduce debt or pay a dividend, group chief executive officer Tony Fernandes said in a Bloomberg Television interview on Tuesday (Aug 30).
AirAsia's board approved the sale process for all or a substantial part of the unit, Asia Aviation Capital Ltd., the carrier said in a filing on Monday.
"Depending on who's the buyer, and there seems to be tremendous interest, we'll likely divest all or maybe keep a minority interest for a period and sell out," Mr Fernandes said.
The company named RHB Investment Bank Bhd., Credit Suisse Group AG and BNP Paribas SA as joint advisers for the transaction.