AirAsia nears deal to buy 100 Airbus A220 jets in expansion push, say sources
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A 100-jet order would be the single largest purchase of A220 aircraft ever.
PHOTO: REUTERS
New York – Malaysian budget carrier AirAsia is close to finalising an order for around 100 Airbus SE regional jets, according to people familiar with the matter, as the airline looks to expand its operations.
The companies have agreed on terms and an announcement may come as soon as this week, the people said. The timing of the deal is still subject to change, they added.
A 100-jet order would be the single largest purchase of A220 aircraft ever. AirAsia is considering options that could push the total size of the commitment to 150 jets, the people said.
Representatives for AirAsia and Airbus declined to comment.
AirAsia, overseen by Malaysian businessman Tony Fernandes, is pushing hard on expansion plans after scaling back operations and restructuring its finances during the Covid-19 pandemic.
Beyond its regional Asian market, the airline is set to start its Middle East hub in Bahrain as early as 2026, which will act as a launching pad for transit flights to Europe.
AirAsia operates an all-Airbus fleet with about 250 mostly single-aisle aircraft and has a backlog of almost 400 orders comprised mostly of the top-selling A320 family of jets.
The low-cost carrier tentatively agreed in 2025 to buy up to 70 of the extra-long-range A321neo jets in a US$12.3 billion (S$15.5 billion) pact, while phasing out its widebody fleet.
The A220 deal has long been in the making, with negotiations stretching back into the early part of 2025. The model, which can seat between 100 and 160 passengers, is smaller than what AirAsia typically flies but would enable the airline to operate from smaller airports and in markets that have lower demand for traditional single-aisle jets.
A three-digit order haul for Airbus’ smallest commercial jet would be a major boost to the A220 programme, which has been beset by slow sales and supply-chain issues that have impeded output and operators.
The A220 is produced at plants in Mirabel, Canada, and Mobile, Alabama, US. BLOOMBERG
