Asia’s biggest budget airline AirAsia Bhd will kick off the sale of its leasing unit this month, seeking to cut debt with a deal that could value the business at about USD 1 billion, people familiar with the matter told Reuters. 

The sale would be significant for a carrier with a market value of USD 2 billion. A successful deal would help bolster AirAsia’s finances and spur growth.

The carrier planned to tap potential suitors including the leasing units of China’s HNA Group, China Merchants Bank, and the aviation leasing company backed by Hong Kong billionaire Li Ka-shing for the sale.

AirAsia has a fleet of some 170 jets operating across Thailand, the Philippines, India, Indonesia and Malaysia and competes with the likes of Indonesia’s Lion Group, Singapore Airlines, Qantas Airways, Malaysian Airlines and some of their budget affiliates.

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