![airasia jets on tarmac](/sites/default/files/styles/crop_freeform/public/2024-08/2x9j2x5.jpg?itok=6GxX1TU9)
SINGAPORE—Capital A, the parent company of AirAsia, has raised nearly half a billion dollars through a revenue bond to finance aircraft leasing and continue its efforts to bring aircraft out of storage.
Private credit funds Ares Management Corp. and Indies Capital Partners will provide $200 million for aircraft reactivation, while an additional $243 million from aircraft lessors will be used to refinance existing lease liabilities.
Group CEO of AirAsia Aviation Group Bo Lingam said the group plans to reactivate 10 aircraft in October, with a further 15 to follow in 2025.
In its first-quarter earnings report for 2024, Capital A said it is expecting 221 aircraft by the end of the year, consisting of 204 active aircraft, 12 in maintenance and five operational spares. It is also expecting three new deliveries and three lease entries in the fourth quarter.
Capital A is expected to announce its first-half and second-quarter earnings in the coming days.
Capital A CEO and airline co-founder Tony Fernandes said that the airline is "approaching the finish line" of pandemic recovery. It has also submitted its Extraordinary General Meeting documents to the Malaysian stock exchange for review and approval before the PN17 status is removed. PN17 is a financial distress classification for Malaysian listed firms triggered by low equity.