Airbus sells 6 jets belonging to AirAsia

Airbus is putting the six jets it built for AirAsia up for sale, in what may herald a “fire-sale of unwanted planes” after weeks of a halt on air travel due to the global lockdown over Covid-19, Reuters reports quoting sources.

The aircraft manufacturer has decided to put the planes on sales and give up reserving the pending orders for AirAsia, one of their largest customers.

Out of the six canceled aircraft, four are A320neo, and two are A321neo, the report said.

Due to the Covid-19 pandemic, almost 96 percent of the airline’s fleets grounded and with negligible monthly revenue, AirAsia said that the decision is a part of its cost-cutting methods to help the airline survive.

AirAsia’s CEO Tony Fernandes had earlier said in a statement that, although the airline is going through a tough time, not one single AirAsia employee would lose their job.

He added that all employees were told to take pay cuts of between 15 percent and 75 percent, depending on seniority, while customers were encouraged to accept credit for replacement flights instead of refunds.

“It’s an uncertain time. Never could I have imagined it, no one could have predicted it and yet everyone has been touched by it. So I want to be open and transparent with you in this time of uncertainty.”

The airline has decided that it will look towards its other commitments to help save money, which explains why AirAsia might not be taking any more aircraft deliveries.

As of now, the airline has announced to resume its operations for their domestic routes on April 29.

Only time will tell if  AirAsia will be able to stand strong through the coronavirus crisis.

Although the next few years may be a trying time for aircraft manufacturers, Airbus hopes that some airlines might be interested in buying aircraft at special discounts.

By Sharon Chang


Please enter your comment!
Please enter your name here

Latest News

HealthMetrics secures a total of RM20 million as part of Series A funding

Corporate healthcare benefits and wellness management platform, HealthMetrics secured a total of USD$ 5 million (approximately RM 20 million) as part of...

WSP 2.0 – More is needed for the hard-hit sectors

By Afifah Suhaimi, The newly targeted Wage Subsidy Programme 2.0 (WSP 2.0) introduced by the government under the Prihatin...

IJM Land’s latest residential project, Rimbun Jasmine receives overwhelming response

To help homebuyers in finding the right home and help achieve greater heights in life, IJM Land has launched Rimbun Jasmine, a...

AEON Credit posts PBT of RM76.5 million for Q2FYE21

AEON Credit Service (M) Berhad (“AEON Credit” or the “Company”) announced revenue for the second quarter ended 31 August 2020 (“Q2FYE21”) of...

AirAsia’s Santan set for rapid expansion in Malaysia

Santan, the world's first restaurant brand to offer inflight food on ground, is set for a rapid expansion in Malaysia with the...

Must read

PropTech and the pandemic

By Adrian Un, CEO, SkyBridge International Digitisation and PropTech (property technology) have been buzzwords in recent years, but following...

Empower local agility to unlock new business models post-Covid-19

By Scott Hensarling, Senior Client Partner and Tobjorn Karlsson, Senior Client Partner, Korn Ferry, 2020 has challenged many assumptions...

Don’t despair, targeted repayment assistance is available

By Azaddin Ngah Tasir, CEO of AKPK (Agensi Kaunseling & Pengurusan Kredit), As the automatic blanket moratorium comes to...

Digital transformation for the retail CIO: Connecting digital with physical

By Bruce Richards, Senior Industry Marketing Manager – Retail & Consumer Goods, Adobe, Digital is certainly disrupting retail. Today’s...