Airbus Close To New Order?

A deal for the Airbus A220 could be coming sooner rather than later, thanks to comments from Canada’s Prime Minister Mark Carney.

The Prime Minister, speaking on the sidelines of a summit, said that he had met with the CEO of AirAsia to discuss a deal that would include 8 to 20 aircraft built in Québec.

Québec plays a major role in the A220 program, as it is home to a crucial final assembly line, a move that follows the aircraft, formerly known as the CSeries, which Bombardier developed before Airbus bought it.

The production of this regional jet, therefore, has the support of the Government of Québec, and the Mirabel facility, located just outside of Montreal, is one of two assembly lines in North America, the other in Mobile, Alabama.

A key reason the Airbus A220 remains of such interest is the previously outlined ambitions of the AirAsia Group, which centre on growth over the next five to ten years.

The business is hopeful that, moving forward, there’ll be more flights to secondary airports, which, while showing continued strong demand, are not well served by AirAsia’s current fleet mix.

Smaller destinations are viewed as necessary moving forward, as these locations continue to see not only population increases but also more visitors. As a result, AirAsia wants to pounce on this demand and grow its market share, but equipping itself with the right aircraft is critical.

AirAsia’s Rumoured Airbus Order

AirAsia’s prospective purchase of the Airbus A220 has been a long-winded process that has yet to receive the formal confirmation required.

Initial reporting emerged in December 2024, when airline executives confirmed that a regional jet purchase was under review, with options from Airbus, Embraer, and even COMAC.

The latter two planemakers being considered were viewed as good news, as AirAsia was seeking a deal worth upwards of 100 units to help drive its future growth and launch new routes to more regional locations.

In June, traction began to build on the deal for the A220 with AirAsia, reportedly in advanced talks with Airbus for at least 100 planes, likely to include the A220.

At the most recent Paris Airshow, AirAisa renewed its fleet by signing an MNoU with Airbus for up to 70 A321XLR jets, comprising 50 firm orders and 20 purchase rights.

While a strong order between the pair, a noticeable missing piece of the contract was the A220; however, AirAsia assured that a deal was still in the works, with an announcement expected within the next month, following the A321XLR deal, since there has been radio silence.

For Airbus, despite the intense talks with Embraer and even the possibility of switching towards the more local and emerging COMAC, the planemaker would’ve always felt reasonably confident that the order was theirs to lose.

Additionally, the noticeable absentee is that of Boeing, which was never quite in contention, driven by the lack of available options the American planemaker has in this more regional segment.

The deal largely follows the AirAsia Group’s firm reliance on Airbus planes already in operation, while it also has a strong order book with the manufacturer. While the A220 will add a new fleet type to the business, it’s not from another company; instead, it sees the Asian Group stick to what it knows best.