Airbus, a global aerospace corporation is close to finalising a deal to sell about 100 A220 aircraft to AirAsia, which would mark the budget carrier’s entry into the regional narrowbody segment, Reuters reported citing industry sources.
If confirmed, the agreement could include options for around 50 additional jets beyond the main order and may be announced within days, as Asia’s largest low-cost airline pushes ahead with its turnaround plan.
“We have no announcements to make at this time,” an AirAsia spokesperson told Reuters.
Talks on AirAsia becoming the first customer for a possible high-density, 160-seat version of the A220 first surfaced ahead of last year’s Paris Airshow. At the time, Brazil’s Embraer was also competing to challenge Airbus’ exclusive position with the airline.
Reuters reported last week that Airbus had stepped up efforts to clinch an order from AirAsia for around 100 A220 jets, possibly as early as this month.
Airbus-AirAsia relationship remains strong
AirAsia is already one of Airbus’ largest customers, with more than 350 A320-family aircraft on order. In July, the airline also placed an order for 50 long-range A321XLR jets.
AirAsia co-founder Tony Fernandes told the news agency in June last year that the airline was prepared to diversify its fleet by adding smaller aircraft to open up new routes. Earlier this week, deputy Group CEO Farouk Kamal told Reuters that AirAsia was continuing discussions with aircraft manufacturers for regional planes, as it considers placing an additional order for up to 150 jets.
Pandemic impact and PN17 setback
Over the past two decades, AirAsia has played a key role in driving the expansion of low-cost carriers across the region as incomes increased. However, travel restrictions during the pandemic severely hit parent company Capital A, leading Malaysia’s stock exchange to classify it as financially distressed under a designation known as PN17.
Fernandes, who also serves as CEO of Capital A, said in a statement on Friday that the group had completed its PN17 regularisation plan and was “now working towards the uplift”.
He added that consolidating all AirAsia-branded aviation businesses under AirAsia X would enable the airline to concentrate on growing operations and cutting costs, while Capital A focuses on restoring its financial health.