With the company having the option for another 150 and will serve as the launch customer of the new 160-seat configuration.
International budget carrier AirAsia X (AAX) has reached on Wednesday (May 6) a firm agreement with plane manufacturer Airbus for the acquisition of new planes.
Valued at approximately USD19 billion at list prices, the company has acquired 150 Airbus A220-300 aircraft, with the strategic flexibility option included to upsize the commitment to a total of 300 of the A220 aircraft family to meet future demand.
This landmark agreement represents the single largest firm order for the A220 type placed by any airline globally.
AAX said this move signals a “decisive shift” in AirAsia’s future fleet strategy, where they are prioritizing operational discipline and margin protection in an evolving global market.
With this order, AirAsia makes history as the global launch customer for the high-density, 160-seat configuration.
This variant will serve as the group’s next-generation efficiency workhorse, which it told will be providing immediate right-sizing capacity required to optimize margins on mid-density routes.
AAX also described the A220 as a “highly scalable product,” which offers 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.
Using a state-of-the-art engine technology, the A220 is among the most efficient aircraft in its class as 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,” AAX pointed out.
Furthermore, the A220’s capacity allows the airline to reach profitability with fewer passengers than the larger narrowbody alternatives.
This will then open 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, the airline also stated.
The order was officially announced at a ceremony at the Airbus facility in Mirabel, Canada, with Capital A Chief Executive Officer Tan Sri Tony Fernandes and Airbus Commercial Aircraft Chief Executive Officer Lars Wagner.
Also at the event were Canadian Prime Minister Mark Carney and Christine Frechette, Premier of Quebec.
Bo Lingam, Group CEO of AirAsia Group noted on the purchase deal, “AirAsia has spent more than two decades making the world smaller. We built Malaysia into the world’s top low-cost carrier hub, and we opened up air travel to millions of people across Asia who had never flown before.“
“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 7 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,” ge added.
Lingam also emphasized that with AirAsia’s history of “democratizing travel in Asia” by opening up routes that were never feasible before, they are now going to do it “for the world.”
For his part, Fernandes, who also sits as Advisor to the AirAsia Group added, “In an environment of high fuel prices and volatility, the answer is not to stand still, it’s to double down on efficiency. This aircraft materially improves our fuel burn and trip costs, strengthening our resilience regardless of where the cycle goes.“
“We never waste a crisis at AirAsia- we make bold decisions at the right moment, not the easiest moment. This order reflects our long-term discipline and the scale of our ambitions,” he added.
The Malaysian tycoon also called the A220 as the “perfect tool” for the next phase of AirAsia’s growth, which will allow them to realize their goal of becoming the “world’s first true low-cost network carrier.”
“Beyond the airlines, this agreement strengthens the broader ecosystem we have built in Capital A, from cargo, MRO to digital businesses, and will create real jobs and opportunities in the markets we fly to. Our partnership with Airbus spans more than two decades and has been central to everything we have achieved. Today is another milestone in that journey, and there are many more to come,” he said.
“The A220 will provide an optimal platform for AirAsia, combining low operating costs with the latest technology to maximise productivity and also open up new routes across Asia that were not feasible before,” shared Wagner. “Everyone at Airbus has been pleased to work with AirAsia to finalise this new contract, which is fully aligned with the airline’s new network strategy.”
Upon delivery from 2028, AirAsia X said the aircraft will service destinations across ASEAN, and into Asia Pacific, freeing up larger A320s and A321s to mid-haul routes, and A330s to fly longer-haul routes into Europe, Australia and North America.
