AirAsia in Advanced Talks for Major Aircraft Order Ahead of Paris Airshow
The Malaysian low-cost carrier may announce a deal for at least 100 jets, potentially reshaping its regional fleet strategy.
In a move that could redefine its regional fleet strategy, AirAsia is in advanced negotiations for an order of at least 100 aircraft, expected to be announced at the Paris Airshow next week. Industry sources, as initially reported by Reuters, suggest the Malaysian low-cost airline—historically a loyal Airbus customer—is considering the Airbus A220, the European manufacturer’s smallest jet.
This potential order would be AirAsia’s first major deal since before the pandemic and comes at a time of restructuring and renewed optimism. The airline had previously expressed interest in smaller-capacity aircraft to better serve regional routes, and selecting the A220 would mark a clear step in that direction.
However, the talks are not exclusive to Airbus. Additional reports indicate AirAsia is also in discussions with Brazilian manufacturer Embraer about its E2 jet family, making this a competitive bidding scenario. The final decision is likely to hinge on financing terms, a critical factor for the airline as it emerges from a complex financial restructuring.
Capital A, AirAsia’s parent company, reported a return to profitability in the first quarter of 2025 and is moving forward with plans to consolidate its short- and long-haul operations under a single AirAsia brand. Once listed as financially distressed on the Malaysian stock exchange in 2022, the company now expects to exit that designation by mid-year. The confirmed presence of Tony Fernandes, CEO of Capital A, in Paris is fueling expectations of a formal announcement at the show.
Another key factor is the current supply chain constraints and production limitations faced by aircraft manufacturers. With little room to ramp up output in the short term, any new orders for A320 or 737 MAX aircraft would likely not be delivered until the early 2030s. In contrast, the A220 and E2 families (and the A330neo in the widebody segment) have shorter backlogs, enabling faster delivery timelines.
In the constantly evolving aviation industry, ordering too early can be as risky—or worse—than ordering too late. Aircraft might arrive too late to solve today’s problems or too early to serve a market that has already changed.
The Paris Airshow has long been the stage for major aviation announcements, and the 2025 edition appears to be no exception. Analysts expect a wave of new orders, particularly from airlines in Asia and the Middle East, seeking to capitalize on surging travel demand. In addition to AirAsia, potential announcements are anticipated from VietJet and Riyadh Air.
This prospective deal underscores a broader trend of recovery and expansion in the Asian airline sector. AirAsia plans to launch over 30 new routes in 2025 and has already confirmed the delivery of 14 new aircraft this year to support its growth.
Comentarios
Para comentar, debés estar registrado
Por favor, iniciá sesión