Budget carrier AirAsia, which has ordered another 50 A320 planes and taken options on 50 more, described the jets today as "highly efficient" aircraft.

AirAsia said that funding for the jets were being finalised and the five-year-old carrier will adopt a similar financing package as it had taken for its earlier 100 A320s.

Financial details were not revealed. The catalogue price for the initial 50 planes ordered on Monday comes to US$3.3 billion but deals of this size often feature substantial discounts.

Kamarudin Meranum, deputy chief executive, told AFP that the A320 was a "highly efficient aircraft," especially in terms of fuel use.

"Our passengers just love the aircraft," he added.

Kamarudin said AirAsia was working on the funding and was keen to secure early delivery due to its rapid route expansion programme and passenger demand.

"We are working on the funding. We will follow the same route taken to fund the earlier 100 single-aisle, short-haul aircraft," he said.

In 2005, AirAsia secured a loan estimated at about US$1.5 billion at attractive rates from foreign lenders to finance 33 of the 100 planes it had then on order.

AirAsia last year said it may also use ringgit-denominated financing.

Muhamad Khair Mirza, investment analyst with AmResearch, said funding will not be a problem for the budget carrier since it has a strong cashflow position.

"They have a cashflow of RM200 million every quarter (US$57 million dollars). They could fund the aircraft themselves or go out to the market.

"There is a lot of liquidity available and also a very high appetite for aircraft assets," he told AFP.

Not expanding too fast

Muhamad played down concerns that AirAsia was expanding too fast, saying the carrier had to keep ahead of others.

"The fresh 50 jets will arrive after 2012. AirAsia has to maintain its lead. If it does not put in the additional capacity, other airlines will narrow the gap in terms of frequencies," he said.

AirAsia, one of Asia's most successful low-cost carriers, has a fleet of 50 aircraft - 15 A320s and 35 Boeing 737-300s - and has opted to reduce costs by having its fleet made up of just a single type of jet.

With national carrier Malaysia Airlines' recent rationalisation handing AirAsia the bulk of domestic routes in the country, the carrier is trying to expedite the delivery of the A320s.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.