Barclays to help AirAsia buy Airbus

AirAsia said yesterday that British banking giant Barclays was funding its purchase of 15 new Airbus A320-200 aircraft, despite gloomy forecasts for the aviation industry.

"AirAsia has mandated Barclays Capital, the investment banking division of Barclays, to finance 15 of its new Airbus A320-200 aircraft," AirAsia Chief Executive Officer Tony Fernandes said in a statement.

Fernandes did not reveal the size of the deal, but AirAsia officials said the catalogue price of each A320 was about $60 million (Dh220m), and that the financing covers 85 per cent of the purchase price.

Fernandes said three aircraft had been delivered under the funding facility since the start of this year.

"This partnership between AirAsia and Barclays Capital is a testament of the confidence and trust that the global financial community has towards AirAsia's prospects and potentials," he said. "We are very positive that we will carry through the global economic storm and emerge bigger and stronger."

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