AirAsia Group has announced it is set to acquire a Bombardier Global Express 5000, 9M-CJG (cn 9013), from its Caterham Jet (Kuala Lumpur Subang) executive jet unit for USD10 million.

The nineteen year-old aircraft is used by AirAsia's executive chairman, Datuk Kamarudin Meranun, and by Group founder and CEO, Tony Fernandes, for business travel.

As such, AirAsia said in a stock market filing that it moved to acquire the jet on learning Caterham Jet was planning to dispose of it. The loss of the aircraft, the Group explained, would have severely impacted both Fernandes' and Meranun's ability to transact business in an efficient manner as both would then have to had relied upon regular commercial service.

"This would result in significant loss of productivity due to inefficient wait times, especially with the high volume and frequency of travel undertaken by EC and GCEO," it said. "Flying commercial would also mean that EC and GCEO would not be able to conduct business discussions or hold meetings with senior management as they currently do in the private space of the Global Express, adding to the inefficiency."

The transaction will be settled in two parts — a deposit of USD1.5 million to be paid when the agreement is signed; with the remaining USD8.5 million to be paid on delivery of the aircraft.