AirAsia is inching closer to a major deal with Airbus as part of efforts to focus on single-aisle fleet development.
The contract, which had been reported as potentially being announced at the 2025 Paris Airshow, did not eventuate, but is still on track to be confirmed.
Speaking with Reuters, Tony Fernandes, CEO of Capital A and owner of AirAsia, stated that the new order is still forthcoming.
AirAsia firmly believes that before a new deal can be formally announced and naturally finalised, there needs to be a clear pathway for restructuring within the business.
The ongoing restructuring was imposed on the company as part of a view that it had some financial distress. AirAsia has been working diligently to overcome this and is nearing completion.
Not all aircraft orders touted as confirmed during a major international airshow ultimately get over the line, whether for Airbus or Boeing planes.
On several occasions, however, the congregation of industry professionals allows progress to be made on deals such as these, bringing them ever so much closer to being announced.
What The Deal Means For Airbus
Airbus stands to be a significant winner from the new contract that AirAsia is set to sign, with a focus naturally on the development and renewal of its single-aisle fleet.
The AirAsia Group has over 200 aircraft in its fleet, spread across several airlines, and the fleet relies solely on the Airbus portfolio of commercial aircraft.
One of the most significant pillars of the deal is an order for regional aircraft, a changing of the guard in the business, with an order likely to be in the three digits.
This would introduce a new type, with the Airbus A220 being touted as the most likely option, although it is competing with Embraer’s E2.
AirAsia remains confident that a deal will be finalised in the next couple of months and would not only include the possible A220, but also further enhance its reliance on the Airbus A320neo family.
The second part of the contract would be for the A321neo, with orders likely to exceed 50 units; however, the exact figures are subject to change, as finalisation is still required.
AirAsia has hundreds of aircraft on order, including over 300 of the A321neo series and its relevant derivatives. Now, there is an appetite to increase this further.
ABOUT THE AUTHOR
Daniel Fowkes is a Melbourne-based aviation analyst and journalist with over a decade of industry experience. As founder of Dj’s Aviation, he delivers trusted analysis on aircraft, airline strategy and global aviation trends for djsaviation.net
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