Bangkok--15 Oct--Centre for Asia Pacific Aviation Malaysia’s AirAsia X has lined up another two investors in a series of deals that will see the carrier flush with USD125 million in start-up cash ahead of its launch of commercial services next month. Private equity is jumping on board the low cost long-haul carrier having apparently shrugged off the jitters that took hold in global financial markets in Aug-07. Major Japanese financial services group (including aircraft leasing), Orix Group, and Bahrain's Perigon Capital are each acquiring 10% stakes in AirAsia X for USD37.5 million apiece. AirAsia holds 20% of AirAsia X, while Virgin Group also holds 20%, with founders including Tony Fernandes and AirAsia X (FAX) Chairman, Kamarudin Meranun, holding the remainder. AirAsia X, which is yet to fly a single passenger, is now valued at USD375 million and has enough funds on hand to see it through the next two to three years. AirAsia X is also aiming to raise USD300 million in an IPO by 2010. Meanwhile, Air New Zealand has joined Singapore Airlines and Emirates in declaring it is not interested in investing in Virgin Blue. Toll Holdings, which inherited a 62.3% interest in Virgin Blue when it acquired Patrick Corp in 2006, last month confirmed it would make a decision about the Virgin Blue stake by the end of the year, including the possibility of exiting the carrier altogether. Virgin Group holds 26.5% of the carrier and has expressed interest in raising its holding in the past. Virgin Group Chairman, Sir Richard Branson, fresh from his investment in AirAsia X, also faces the prospect of Virgin Atlantic coming back on the market soon, as Singapore Airlines is likely to shift its investment focus. The question is: Which airline does Branson buy back? Probably neither. A partnership with private equity investors is one way for Branson to leverage his position and the assets of both carriers. In the private equity view of the world, where the parts are worth more than the sum of the whole, Virgin Blue is an interesting proposition that carries much less political baggage than, say, Qantas. It is already four airlines in one (the Australian domestic carrier, New Zealand-based LCC Pacific Blue, Samoan JV Polynesian Blue, planned long-haul unit V Australia) not to mention a possible ultra LCC startup, as well as the Velocity frequent flyer programme and Blue Holidays arms. As Toll nears a decision on which way to jump, the private equity calculators are no doubt working overtime.