Airbus is nearing an agreement to sell about 100 Airbus A220 aircraft to AirAsia, according to industry sources. If completed, the purchase would mark the Malaysian low-cost carrier’s first step into regional narrowbody jets.
The package may also include options for 50 additional aircraft. At list prices, a potential total of 150 jets could reach about $15 billion, sources said.
The prospective Airbus A220 order signals a strategic change in AirAsia’s fleet planning. The airline currently runs an all-Airbus A320-family operation of more than 250 aircraft.
AirAsia co-founder Tony Fernandes has said the group stands ready to diversify its fleet. He has indicated that smaller aircraft could support new route development.
Regional narrowbody planes could help AirAsia target thinner demand pockets. They could also improve economics on routes that do not justify A320-family capacity.
Discussions have focused on a high-density Airbus A220 variant configured for about 160 seats. AirAsia could become the first buyer of that layout, sources said.
Airbus has been developing this version with a second pair of overwing emergency exits. The added exits would support the higher seat count within certification rules.
Airbus aims to certify the 160-seat Airbus A220 variant by 2026, sources said. That timeline aligns with AirAsia’s push to broaden its network across Southeast Asia.
A large Airbus A220 deal would undercut competing pitches from Embraer and China’s COMAC. AirAsia has evaluated Embraer’s E2 regional jets alongside the A220 and COMAC aircraft.
Fernandes confirmed in October that AirAsia held active discussions with COMAC. He described the Chinese manufacturer’s offerings as “a big step forward.”
Meanwhile, the aircraft talks follow major corporate restructuring at AirAsia’s parent, Capital A. The company completed its PN17 financial restructuring plan on January 23 after the pandemic-era strain.
In addition, AirAsia X completed its acquisition of AirAsia Berhad and AirAsia Aviation Group Limited from Capital A on January 16. The move consolidated all AirAsia-branded airlines under one platform.
The reorganized airline group now operates a fleet of about 255 aircraft. It has also set a target of reaching 155 million annual passengers by 2035.
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