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By Judson Rollins

Introduction

Dec. 16, 2019, © Leeham News: AirAsia and long-haul sister AirAsia X have been growing at world-leading rates for much of the past two decades. AirAsia’s fleet growth in the 2000s was so rapid that it quickly became a top customer of Airbus’s A320 program; the airline is now second only to India’s IndiGo as an A320neo customer.

However, neither of the airlines nor their joint venture partners across Asia are producing solid financial returns–making it questionable whether they can economically fly all the aircraft they have on order.

Summary

• Mediocre financial results after lease expenses;
• Debt loads are above industry average, especially at AirAsia X;
• One of the world’s largest order books, especially for A320neos;
• Key bases in countries where capacity growth outstrips local economic trends.