AirAsia Eyes Major Airbus A220 Order at Paris Air Show

AirAsia is reportedly on the verge of placing a major order for 100 Airbus A220 aircraft, according to sources cited by Reuters. The announcement could come during the upcoming Paris Air Show, scheduled for June 16-22, 2025, at Le Bourget. If finalized, this would mark a significant milestone for both AirAsia and Airbus, potentially reshaping the airline’s fleet strategy and future operations in the Asia-Pacific region.

A potential order for the Airbus A220 would mark a significant shift for AirAsia, introducing a completely new aircraft type into its all-Airbus fleet. Currently, the airline group operates A320 and A321 variants (both ceo and neo models), while its long-haul division, AirAsia X, flies A330 widebody jets. The A220, seating 100 to 150 passengers, is smaller than any aircraft in AirAsia’s current lineup, enabling the airline to serve regional routes that may not support larger narrowbody jets.

Beyond fleet diversification, the A220’s addition would bolster Airbus’s position in the competitive single-aisle market, as the aircraft continues gaining traction among airlines seeking fuel-efficient solutions for thinner, point-to-point routes. With its advanced technology, improved operating economics, and enhanced passenger comfort, the A220 provides AirAsia with a versatile platform for both growth and fleet optimization in the years ahead.

While many low-cost carriers globally are moving towards larger aircraft to maximize seat capacity and reduce unit costs, AirAsia appears to be taking a different approach. The acquisition of A220s could enable the airline to strengthen its short-haul and regional network by offering more direct flights to smaller cities across Asia that have growing demand but limited infrastructure for larger jets. This strategy aligns with the vision shared by Tony Fernandes, CEO of Capital A, AirAsia’s parent company. Speaking at an event in January 2024 at AirAsia’s headquarters in Kuala Lumpur International Airport, Fernandes outlined plans to build a strong network feeding multiple long-haul hubs throughout the region, connecting smaller destinations to AirAsia’s broader network.

Beyond its operational significance, a deal of this size would also serve as a vote of confidence in AirAsia’s long-term prospects following years of financial turbulence. The COVID-19 pandemic severely impacted the group’s finances, forcing Capital A to restructure its airline businesses under close monitoring by Malaysian financial regulators. After navigating through the crisis, the parent company undertook a corporate realignment, consolidating its aviation interests under AirAsia X to create a unified airline group better positioned for future growth and resilience.

Currently, AirAsia operates an all-Airbus fleet, including 69 A320-200s, 29 A320-200Ns, three A321-200(P2F)s, and eight A321-200NXs. The airline also has 331 A321-200NX and 36 A321-200NX(LR) aircraft on order. AirAsia’s affiliates across Southeast Asia operate additional Airbus narrowbodies.

The move toward regional jets comes as rival Scoot successfully deploys its Embraer E190-E2 fleet to serve smaller markets within the region that overlap with AirAsia’s target network. Meanwhile, Embraer is actively seeking new buyers for aircraft initially intended for Malaysia’s now-dormant SKS Airways.

AirAsia’s parent company, Capital A, remains under Bursa Malaysia’s Practice Note 17 (PN17), indicating financial distress. The PN17 designation requires restructuring, and any large aircraft order will depend heavily on the financing package secured to support the transaction.

Sources: AirGuide Business airguide.info, bing.com

Tags: Aerotime

AirAsia Eyes Major Airbus A220 Order at Paris Air Show

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