AirAsia Set to Revive A321neo Deliveries and Reactivate Fleet in 2024

AirAsia, based at Kuala Lumpur International, is poised for a significant operational upswing in 2024, as announced by Tony Fernandes, the CEO of its parent company, Capital A. The airline is set to resume the deliveries of the Airbus A321neo later this year and aims to have all its currently inactive aircraft back in service within this quarter.

The low-cost carrier has an outstanding order of 362 A321-200NX aircraft, with a few deliveries made in 2019 before the pandemic-induced suspension. These aircraft will be distributed across AirAsia’s various subsidiaries, including those in Malaysia, Thailand, Indonesia, the Philippines, and the upcoming Cambodian operator.

This announcement comes on the heels of a major strategic decision earlier this month, where Capital A revealed plans to sell its short-haul airline businesses to its subsidiary AirAsia X (D7, Kuala Lumpur International). Following the sale, AirAsia X will undergo a rebranding to become the AirAsia Aviation Group. Fernandes noted ongoing discussions with “committed investors” interested in focused aviation investments.

Fernandes will maintain significant stakes in the AirAsia airlines through his other investment entities. He shared insights into the future trajectory of the AirAsia Aviation Group, highlighting a multi-hub strategy to expand global connectivity. Key hubs include Bangkok for Europe-bound flights, Kuala Lumpur International and Manila Ninoy Aquino International for routes to Africa and the United States, respectively. This strategy envisions leveraging the ASEAN region as a central hub for extended global reach.

Regarding the airline’s long-haul expansion plans, Fernandes mentioned the potential need for the Airbus A350 for routes to Europe and the US West Coast, with the earliest consideration set for 2025. Additionally, the integration of the A330 aircraft into the Indonesian and Philippine markets is underway, potentially expanding AirAsia’s range from Jakarta Soekarno-Hatta. AirAsia X’s current and future fleet includes A330-300s and A330-900Ns.

Fernandes, who plans to retire as CEO of Capital A in 2028, outlined several objectives before his departure. These goals include increasing the airline’s fleet to 333 aircraft, boosting annual passenger numbers to around 200 million, finalizing the merger of AirAsia and AirAsia X, launching new airlines in Singapore and Vietnam, and centralizing operations under a single holding company.

This series of strategic moves and expansions underscores AirAsia’s ambition to strengthen its presence in the aviation market and enhance its global footprint, marking a new chapter of growth and diversification for the airline group.