Malaysian airline AirAsia will defer delivery of seven aircraft by four years to 2015 due to space constraints at its Kuala Lumpur terminal.

AirAsia ordered 175 Airbus A320 aircraft in 2005, with a delivery schedule from December 2005 to October 2014, but deliveries have been pushed back several times due to its overcrowded budget terminal.

The carrier will be able to optimise its fleet and avoid costs associated with leaving idle or under-utilised aircraft due to infrastructural limitations.

AirAsia plans to build its own $460m airport away from Kuala Lumpur International Airport (KLIA) to improve standards and lower operational costs.