AirAsia (AK, Kuala Lumpur International) has sold its subsidiary Merah Aviation Asset Holding Limited to Castlelake for USD768 million. The transaction includes the portfolio of twenty-five A320 Family aircraft currently owned by Merah Aviation, as well as four further A320-200s due for delivery in 2019.

Castlelake will lease all twenty-nine aircraft back to AirAsia. The portfolio of twenty-five units from Merah Aviation includes both A320-200s and A320-200neo.

"As we move towards becoming a travel technology company, the disposal of these aircraft will not only unlock significant value but also bring us closer to our goal of being a truly digital company. Years ago, many analysts criticised us for having high gearing and owning assets. Now many understand why we did that," AirAsia Group CEO Tony Fernandes said.

Merah Aviation was until now directly owned by Asia Aviation Capital, AirAsia's asset arm.

The transaction is subject to the approval of AAGB’s shareholders and other relevant customary closing conditions and is expected to be completed in the second quarter of 2019.

Meanwhile, AirAsia Japan (Nagoya Chubu) will launch its maiden international route on February 1, 2019. The carrier will thenceforth operate 7x daily from Nagoya Chubu to Taipei Taoyuan, ch-aviation schedule analysis has revealed. Currently, the Japanese LCC deploys its two A320-200s exclusively between Nagoya and Sapporo Chitose.