KUALA LUMPUR: AirAsia X Bhd has placed a US$15.2 billion (RM53.20 billion) order for 55 Airbus A330neo aircraft, which is the single-largest order for the Airbus family.

In a statement yesterday, the loss-making low-cost carrier said the delivery of the newly-ordered aircraft will begin in 2018.

“This latest deal with Airbus will enable AirAsia X to consolidate its growth rate from 2015 to 2017 before ramping up deliveries from 2018,” said AirAsia X co-founder and director Tan Sri Tony Fernandes.

“The A330 has proven itself to be exactly the right aircraft for our business model, combining low operating costs, long-range flying capability and high levels of comfort,” he added.

Since its listing in July last year, AirAsia X has been registering losses from the fourth quarter of 2013 and is currently in a net debt position. Its cash balance shrank to RM144.7 million as at June 30 from RM262.9 million as at end-2013.

For the third quarter ended Sept 30, the aviation company posted a net loss of RM210.9 million from net earnings of RM26.4 million a year before. Revenue, however, increased 16.2% to RM698.8 million, from RM601.5 million previously.

The Edge Financial Daily had reported that AirAsia X was facing problems in paying its staff, and also in seeking aircraft loans from financial institutions due to its current financial position.

Last Wednesday, the daily also reported that AirAxia X is “furiously” cutting costs as it looks to simplify its model and return to profitability.

The A330neo aircraft reduces fuel consumption by about 14% per seat and increases flight range up to 400 nautical miles. The range capability enables possible direct flights from Kuala Lumpur to Europe.

The funding for the purchase of the aircraft will come from a combination of borrowings, the company’s internal reserves and cash generated by its operations, AirAxia X’s statement read.

“The company expects to use operating leases for all of its 2015 aircraft deliveries to reduce up-front cash requirements and maintain its target of achieving positive free cash flow,” said AirAsia X in a Bursa Malaysia filing.

By 2026, the company’s total fleet size is expected to reach 82 aircraft.

AirAsia X’s share price ended the day unchanged at 68.5 sen, with a market capitalisation of RM1.62 billion.

This article first appeared in The Edge Financial Daily, on December 16, 2014.