AirAsia may order more Airbus A320 jets

AirAsia Bhd, the region’s biggest budget carrier, may order additional Airbus SAS planes within the next two months to facilitate growth as it seeks to form more airline partnerships.

The Malaysian carrier may place an order for 50 A320 jets with an additional 50 options, Group Chief Executive Officer Tony Fernandes told reporters today in Sepang, outside Kuala Lumpur. A deal could be announced as early as next month’s Farnborough Air Show in the U.K., he said.

“That’s what they want,” Fernandes said. “It depends on whether they give me a good deal.”

AirAsia is already Airbus’s biggest customer for single- aisle A320s with 275 on order, including A320neo models. The carrier is accelerating fleet plans as it forms more joint venture airlines, with a budget tie-up with All Nippon Airways Co due to start flights from Tokyo’s Narita Airport in August. 

The group wants to start five such partnerships over the next two years in countries including China, Vietnam and South Korea, said Fernandes, who is set to move to Jakarta this month to oversee regional growth. Malaysia will remain its headquarters, he said. 

AirAsia reported its first increase in profit in five quarters in the three months ended March, as more travelers opted for low-cost flights during the global economic slowdown. Net income increased to RM172.4 million, the company said May 24. 

The group is having a “fantastic” second quarter, boosted by lower fuel costs, said Fernandes. Its cash position is at a “record” high and the company is well-placed to pay “constant” dividends, he said.