On May 6, AirAsia pulled the trigger on a 150-strong Airbus A220 order, but what other interesting developments came from this order?
This order was a massive vote of confidence into the A220 program by Capital A CEO Tony Fernandes, and he is looking to expand on this further.
Without further ado, let’s get into it…
The Order from AirAsia for 150 Airbus A220-300s…
AirAsia made the announcement at the home of the Airbus A220, Mirabel on May 6.
The purchase agreement for 150 jets is the largest single firm order placed for the aircraft type, and takes the overall gross orders beyond 1,000 for the European planemaker.
Furthermore, there are options with the carrier to purchase another 150 on top, potentially bringing the full commitment to 300 Airbus A220 aircraft.
Commenting on the milestone order was Tony Fernandes, the CEO of Capital A & Advisor to AirAsia Group:
“We have built AirAsia by making bold decisions at the right moment, not the easiest moment.”
“This order reflects our long-term discipline and the scale of our ambitions. The A220 unlocks new markets and routes and brings us closer to building the world’s first true low-cost network carrier,”
“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.”
Adding to this was Lars Wagner, the CEO of Commercial Aircraft at Airbus:
“The A220 will provide an optimal platform for AirAsia, combining low operating costs with the range that will enable the carrier to open new routes across Asia and beyond”.
“Airbus and AirAsia teams have been working tirelessly to reach this landmark agreement, which is fully aligned with the airline’s new network strategy.”
How Will The Airline Utilise These Aircraft?
What AirAsia looks to be doing is a massive step towards overall fleet renewal in the coming years.
It is understood that the first Airbus A220-300 will be delivered to the carrier in Q1 of 2028.
AirAsia did confirm via their press release that their fleet strategy has now been completed to build the first narrowbody global low-cost network carrier.
They will be phasing out their Airbus A330 fleet towards a high utilisation, narrowbody operational model, which by the time all deliveries are complete, will see them operating the following aircraft:
- Airbus A321neo.
- Airbus A321neoLR.
- Airbus A321XLR.
- Airbus A220-300.
As Bo Lingam, the Group CEO of the AirAsia Group says, there is a reasoning in opting for this aircraft:
“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.”
“We have democratised travel in Asia by opening up routes that were never feasible before, and now we are going to do it for the world.”
Fernandes Wants The Airbus A220-500 for AirAsia…
For Tony Fernandes, it looks like he doesn’t want to stop there with the Airbus A220-300.
He is extremely keen to get his hands on the yet-to-be announced -500 variant.
At the press conference, he said the following:
“When you launch it, we will buy 150”.
Airbus Group CEO Guillaume Faury confirmed that the manufacturer is still not ready to launch the A220-500, but it is very clear that Tony Fernandes will purchase 150 units of that type when they are ready to release it.
After all, as noted above, they have options for an additional 150 A220 aircraft, so it is probably fair to say that this has been discussed in the background during negotiations.
Fernandes would look to replace their older Airbus A320ceos with the A220-500.
There does seem to be a reason why Fernandes is loving the A220 at the moment. Why is that?: Efficiency in a volatile aviation industry.
He said:
“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. 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.”
“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.”
Looking Ahead…
It is clear that there is a lot that meets the eye with this mega 150-strong Airbus A220 order by AirAsia.
They are looking at the landscape currently, and have positioned themselves accordingly to volatility, and are focusing on efficiencies.
For Tony Fernandes and the rest of the executive leadership team at AirAsia, it is clear they have found what the solution to that will be.
Looking ahead, it will be interesting to see how they utilise the Airbus A220-300 into their flights, and whether indeed, they will double down on the program via 150 units of the -500 that they could exercise on.
But for now, the moves have been made.
It is now to AirAsia to deliver on their plans from Q1 2028 onwards, when the first aircraft gets delivered.
Continue to follow The Aviation Hub for more analysis and insight!
