AirAsia Orders 70 A321XLRs, Eyes Global Long-Haul Network

AirAsia has confirmed an order for 50 Airbus A321XLR aircraft with conversion rights for 20 more, signaling a bold step toward building a global long-haul network using narrowbody jets. Deliveries are expected between 2028 and 2032, though AirAsia aims to bring the XLR into service as early as 2027. CEO Tony Fernandes emphasized the transformative potential of the aircraft, allowing the airline to expand into new destinations previously unsuitable for widebodies like the A330.

The low-cost carrier plans to establish virtual hubs in the Middle East, Europe, and East Asia to support one-stop services across the globe. Fernandes noted Japan could serve as the East Asian hub, with fifth-freedom routes already in operation between Osaka and Taipei. The airline prefers leveraging existing AOCs and traffic rights over establishing new ones.

The A321XLRs will also help develop direct routes from secondary airports such as Denpasar, Penang, and Johor Bahru, and open thinner long-haul markets like Busan and Hiroshima. The new order adds to AirAsia’s existing commitments, which include 322 A321neos and 36 A321LRs. Its narrowbody fleet currently includes 170 A320ceos, 40 A320neos, and 15 A321neos across its Southeast Asian subsidiaries.

AirAsia plans to finance the order through a combination of bond issuance, leases, and possible purchases, with a bond placement expected around October. Meanwhile, the airline’s widebody strategy remains under review, especially for its Philippine operations, as discussions with Airbus continue regarding 15 A330-900Ns and potential uses for transpacific routes. Another major aircraft order is expected soon.

Related News: https://airguide.info/?s=airasia, https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com