Bangkok--20 Feb--KASIKORNBANK
Kasikorn Factory and Equipment Co., Ltd. (KF&E) has provided financing under lease term to Thai AirAsia for the acquisition of Thailand’s first fuel-saving Airbus A320 with Sharklet wingtips — that can save at least 3% in fuel consumption — totaling THB1,050 million. This year, KF&E aims to attain 15-percent growth in their business, which would help put them at the top position in equipment leasing within the next two years.
This Airbus A320, valued at THB1,050 million, is the first aircraft that Thai AirAsia will add to their fleet this year, said Mr. Sasawat Virapriya, KF&E Executive Chairman. KF&E’s financing facility is aimed at contributing to the continual development of Thailand’s domestic aviation industry.
This A320 is being factory-equipped with ‘Sharklet’ devices — upturned airfoil devices at the wingtips — specifically designed to reduce fuel burn and emissions by cutting the induced drag on wings mainly during cruise. These sharklets can cut fuel bills by at least three percent, thus helping the aircraft to become more environmentally-friendly.
According to Mr. Sasawat, this is KF&E’s first large financial support deal to the Thai aviation industry. With a complex deal structure inherent to aviation equipment, this is deemed an exemplary agreement that matches the requirements of a large corporate customer in a highly-specialized industry.
In 2013, KF&E is targeting an increase in their financing by 15 percent, rising to THB11 billion, with similar growth expected in their SME and large corporate credit extension. Currently, the company’s SME portfolio is recording over 30 percent growth YoY. High growth is seen in construction, printing and packaging as well as metal industries. Their large corporate business portfolio has also enjoyed steady growth, especially automotive parts, given that customers have increased investments in machinery to keep up with brightening economic growth and rising business opportunities. Amid the Baht’s appreciation, exporters should take this opportunity to import machinery at lower prices to improve their production capabilities and branch out into neighboring countries ahead of trade liberalization per the AEC.
KF&E is confident that their customers in each industry will be served well by KF&E in the acquisition of new and pre-owned machinery. Aside from customer responsiveness, regardless of size, contact with KF&E is being made even more convenient via KBank branches and Corporate and SME Service Centers. Their efforts reaffirm the KGroup commitment toward Customer-Centricity, particularly in enhancing customer global competitiveness ahead of the AEC.