AirAsia X Gets Japan, Bahrain Investors

The deals mark an important phase in the airline's growth as the money will be used to pay for fleet expansion, it said in a statement.

"We believe that AirAsia X is now well-placed to further enhance its reach to destinations in the Middle East and North Asia, and to continue to revolutionize the long-haul travel market by providing everyday low fares," said Chief Executive Azran Osman-Rani.

"This new investment will allow AirAsia X to expand its fleet with new generation aircraft and further strengthen Malaysia's leading position as ASEAN's low cost carrier hub," he said.

After the share sale, AirAsia X's parent, Aero Ventures Sdn. Bhd., will own 48 percent stake in the carrier while billionaire Richard Branson's Virgin Group will hold 16 percent, the statement said.

The region's largest low-cost carrier, AirAsia, will own the remaining 16 percent stake, it said.

AirAsia X now flies from Kuala Lumpur to Australia's Gold Coast and to Hangzhou in China using leased aircraft. It has ordered 15 wide-bodied A330s, the first of which is to be delivered in August, and has said it plans to own a fleet of 50 planes.

The carrier expects to fly eventually to other Asian, European and the Middle Eastern countries, including Japan, South Korea, India, Britain and the Czech Republic.

AirAsia X Dhairman Kalimullah Hassan said many investors had expressed interest in the stake but Manara and Orix were selected because they add value to the airline.

"Manara will allow AirAsia X greater access to the fast-growing Middle East region while Orix will contribute its significant expertise in aviation finance and leasing," he said.