Stephenson Harwood (Singapore) Alliance has advised AirAsia Group Berhad (AAGB), and its wholly-owned subsidiary Asia Aviation Capital Limited (AACL), on the sale of AACL's entire equity interest in Merah Aviation Asset Holding Limited (Merah Aviation) in a deal valued at US$768 million.

The deal comprises 25 existing aircraft, currently leased to AirAsia Berhad, which will be acquired by funds managed by Castlelake, L.P. (Castlelake), a U.S. based global private investment firm and experienced leader in aircraft ownership and servicing. In addition to the sale of shares of Merah Aviation, Castlelake will also purchase from AACL a total of four new aircraft to be delivered in 2019.

The 25 existing aircraft – which include the A320-200ceo and A320neo, as well as the four new A320-200ceo aircraft – will be leased back to AirAsia Berhad and its affiliates.

The transaction is subject to the approval of AAGB's shareholders and other relevant customary closing conditions, and is expected to be completed in the second quarter of 2019.

The team is led by aviation partner Saugata Mukherjee, with finance associates Adam Smart and Wan Ching Choy. Partner George Cyriac, senior associate Sheetal Sandhu and associate Philippa English are advising on specific corporate issues.