PETALING JAYA: AirAsia X Bhd
(AAX) has ordered 150 Airbus A220-300 aircraft worth about US$19bil (RM74bil) to tap high-growth thin markets while adding more flights on its established trunk routes.
The agreement with Airbus offers flexibility to increase the order to 300 of the A220 aircraft family to meet future demand.
Bernama quoted AirAsia adviser Tan Sri Tony Fernandes as saying that the airline may possibly buy another 150 aircraft if the manufacturer builds the stretched version, known as the A220-500, which would likely accommodate over 180 seats.
In comparison, the A220-300 comes with a high-density, 160-seat configuration.
Fernandes said the final price tag can grow to US$38bil if the order includes 150 Airbus A220-500.
In a statement, AAX said the landmark agreement with Airbus represented the single largest firm order for the A220 type placed by any airline globally.
“(Our) fleet strategy is now complete to build the first narrowbody global low-cost network carrier.
“The A220 is a highly scalable product, offering a seamless path to the future A220-500 variant to meet evolving capacity needs and successor to the aging A320s in the similar capacity range of 180+ seats,” it said.
Upon delivery from 2028, the aircraft will service destinations across Asean, and into the Asia-Pacific region, freeing up larger A320s and A321s to mid-haul routes, and A330s to fly longer-haul routes into Europe, Australia and North America.
The order was officially announced at a ceremony at the Airbus facility in Mirabel, Canada, attended by Capital A chief executive officer (CEO) Fernandes and Airbus Commercial Aircraft CEO Lars Wagner.
The event was held in the presence of the Canadian Prime Minister Mark Carney and the Premier of Quebec Christine Frechette.
With this order, AAX makes history as the global launch customer for A220-300.
AAX said this variant will serve as the group’s next-generation efficiency workhorse, providing immediate right-sizing capacity required to optimise margins on mid-density routes.
Powered by state-of-the-art engine technology, it is among the most efficient aircraft in its class, offering an optimal balance of range and capacity.
It is approximately 20% more fuel efficient and produces about 20% less emissions compared to the A320ceo.
“The A220 is a natural strategic fit within the group’s multi-gauge fleet.
“It will provide the flexibility to easily meet demand, allowing AirAsia to aggressively increase flight frequencies on existing routes, giving guests the convenience of multiple daily departures and better connectivity windows, supporting Fly-Thru traffic,” added AAX.
The airline also noted that the A220’s capacity means it can reach profitability with fewer passengers than the larger narrowbody alternatives.
This opens up smaller, high-growth markets and secondary hubs that were previously commercially unviable, advancing AirAsia’s mission to make the world smaller and ensuring everyone can fly.
Commenting on the order, AAX group CEO Tharumalingam Kanagalingam said: “This plane gives us the ability to build the biggest and densest network, serving as a vital tool for efficiency.
“Its range of up to seven hours opens up entirely new possibilities, and allows us to match right-sized capacity to demand and give our guests the flexibility to fly whenever they want through increased frequencies,” said Tharumalingam, also known as Bo Lingam.
Meanwhile, Fernandes said the new aircraft materially improves the airline’s fuel burn and trip costs.
“The A220 is the perfect tool for our next phase of growth, allowing us to build the world’s first true low-cost network carrier.”
