AirAsia Considers Expanding Fleet with 100 Regional Jets

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AirAsia, known for its all-A320 family fleet, is exploring a significant expansion strategy by considering the addition of approximately 100 regional jets, a move that could diversify its operations and potentially end its exclusive use of Airbus aircraft. The airline is currently in technical discussions with Airbus, Embraer, and COMAC, as reported by Aviation Week, indicating a strategic pivot towards enhancing its service capabilities across Asia and Africa.

Bo Lingam, CEO of AirAsia Aviation Group, emphasized the preliminary nature of these discussions, noting that there is no current preference for any manufacturer. The decision to consider regional jets stems from the airline’s objective to rapidly scale operations in response to the growing demand for low-cost travel within its service regions. This strategic shift is part of AirAsia’s broader goal to enhance connectivity, particularly through secondary airports, thereby facilitating greater network expansion throughout the Asia-Pacific region by 2027.

As of the end of September 2024, the AirAsia Group’s fleet consisted of 221 aircraft, with 181 operational, including spares. Lingam projects that the active fleet will increase to 205 aircraft by the end of 2024 and 233 by the end of 2025. The group recently resumed aircraft deliveries, adding four new A321-200NX units, with five more expected soon. Despite the potential introduction of regional jets, AirAsia has an existing order of 334 A321-200NX and thirty-six A321-200NX(LR)s.

The adoption of regional jets could replicate the model used by Scoot, which utilizes E190-E2s to connect smaller Southeast Asian cities with Singapore, enhancing its network. This approach aligns with AirAsia’s vision to develop Kuala Lumpur International Airport (KLIA) as a major hub for affordable global connectivity, as articulated by Tony Fernandes, CEO of Capital A, the holding entity for AirAsia carriers. AirAsia currently dominates KLIA’s traffic, accounting for 43% of its flights and 74% of its total low-cost carrier capacity.

Fernandes envisions transforming KLIA into a central hub that could rival major Middle Eastern hubs like Dubai International. However, the use of regional jets at KLIA is currently limited, with MAI – Myanmar Airways International being the only carrier operating such aircraft with its thrice-weekly E190 services from Yangon.

This strategic initiative by AirAsia could significantly influence the regional aviation market, providing enhanced connectivity options and positioning Malaysia as a key player in international low-cost air travel.

Related News : https://airguide.info/?s=AirAsia

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

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