KUALA LUMPUR (March 16): AirAsia X Bhd (AAX), the long-haul arm of budget carrier AirAsia Bhd, will lease an A330 aircraft to AirAsia from tomorrow until June 12 to serve the latter's Kuala Lumpur-Kota Kinabalu route.

In a filing with Bursa Malaysia today, AAX said it had entered into a wet lease agreement with AAX today for the aircraft to serve return flights from Kuala Lumpur to Kota Kinabalu in an effort to mitigate operational constraints during peak travel season.

The cost of the wet lease is US$4.93 million (RM20.39 million), based on US$5,600 (RM23,163) per block hour, inclusive of flight crew, all maintenance of the aircraft, insurance (which includes hull and third party liability and excludes passenger, baggage and cargo liability insurance), ground handling services and checked baggage charges, but excluding costs of meal services on board.

AirAsia is also liable to pay AAX costs directly linked to delays or cancellations of flights directly attributable to AirAsia, its employees, agents, or subcontractors, whether caused by damage to the aircraft or operational or technical reasons.

The agreement may be extended based on mutual agreement between AAX and AirAsia, but AAX also has the power to terminate the agreement due to any breach by providing an immediate notice to AirAsia.

The contract is not expected to have a financial impact in AirAsia's or AAX's current financial year.

AirAsia shares closed one sen or 0.56% lower at RM1.78, with a market capitalisation of RM4.93 billion.

Shares of AAX closed down half a sen or 1.64% at 30 sen, with a market capitalisation of RM1.24 billion.