AirAsia may sell leasing unit as early as December to pare debt

[KUALA LUMPUR] AirAsia expects to sell its aircraft- leasing unit as early as December as the largest customer for Airbus Group SE's single-aisle jets aims to net as much as US$1 billion from the transaction and pare debt.

Proceeds from the sale may be used to reduce debt or pay a dividend, Group Chief Executive Officer Tony Fernandes said in a Bloomberg Television interview with Yvonne Man Tuesday. AirAsia's board approved the sale process for all or a substantial part of the unit, Asia Aviation Capital, the carrier said in a filing on Monday.

"Depending on who's the buyer, and there seems to be tremendous interest, we'll likely divest all or maybe keep a minority interest for a period and sell out," Mr Fernandes said.

The company named RHB Investment Bank, Credit Suisse Group AG and BNP Paribas SA as joint advisers for the transaction.

BLOOMBERG