AirAsia clinches deal to sell 182 Airbus jets portfolio for $1.2 billion

AirAsia Bhd is selling up to 182 Airbus jets to firms managed by BBAM Ltd, one of the world's largest aircraft portfolio managers, in a $1.2 billion deal that will help it cut debt and give it firepower to expand further.

With the sale of its leasing operations, Asia's biggest budget airline is cashing in on a booming leasing sector after ordering hundreds of Airbus planes at bargain prices in recent years to become one of Airbus' biggest customers.

The move, which lifted AirAsia's shares 5 percent higher, is part of restructuring efforts that include selling stakes in businesses and revamping associate airlines since the group's finances came under scrutiny three years ago as amounts owed by its associate firms rose.

"Today's sale is much in line with our stated strategy of disposing non-core assets and businesses, an undertaking which we have successfully executed over the last six months - starting with our training centre, ground handling unit and now our leasing unit," AirAsia Group CEO Tony Fernandes said in a statement.