Kuala Lumpur, June 12 - AirAsia, the Malaysia-based low-cost carrier, is reportedly in advanced negotiations to place a significant order for at least 100 Airbus jets at the upcoming Paris Airshow, according to industry sources cited by Reuters. This potential deal, expected to be finalized next week, marks a pivotal moment for the airline as it seeks to introduce the Airbus A220, the planemaker’s smallest jet, into its fleet. The move signals AirAsia’s strategic shift toward smaller aircraft to enhance its regional route network, aligning with its ongoing recovery from financial challenges and a broader restructuring of its operations.
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AirAsia, one of Airbus’s largest customers with over 350 planes already on order, has not placed a new aircraft order since before the COVID-19 pandemic. The airline, which operates an all-Airbus fleet, has been cautiously managing its growth amid financial difficulties exacerbated by pandemic-related travel restrictions. In 2022, Malaysia’s stock exchange classified AirAsia’s parent company, Capital A, as financially distressed. However, the company has been working to exit this status by mid-2025, with this potential order signaling confidence in its recovery trajectory. AirAsia has also been restructuring its order book, taking delivery of only a few aircraft in recent years, including four Airbus jets in August 2024, which the airline described as a milestone in its growth strategy.
The Airbus A220, a narrow-body airliner originally developed by Bombardier as the CSeries, is designed for efficiency and flexibility, making it ideal for regional routes. With a range of up to 3,600 nautical miles and the ability to seat between 108 and 160 passengers, depending on the variant (A220-100 or A220-300), the A220 offers lower operating costs compared to larger jets. Its fuel-efficient Pratt & Whitney PW1500G engines, carbon composite wings, and optimized aerodynamics align with AirAsia’s focus on cost-effective operations. The airline has previously expressed interest in smaller aircraft to serve shorter, high-frequency regional routes, a strategy that could enhance its market position in Southeast Asia’s competitive low-cost sector.
Although the deal with Airbus appears to be close, negotiations are ongoing, and no agreement is guaranteed. Industry sources note that AirAsia has also been in discussions with Brazil’s Embraer about its E2 jets, particularly after Malaysia’s SKS Airways halted operations earlier in 2025, leaving Embraer seeking buyers for its aircraft. This suggests AirAsia is carefully evaluating its options to ensure the best fit for its fleet expansion. Neither AirAsia, Airbus, nor Embraer has provided official comments on the talks. As part of its broader strategy, Capital A plans to sell its AirAsia aviation business to its long-haul unit, AirAsia X, to consolidate short- and long-haul operations under a single brand. This restructuring, combined with the potential A220 order, reflects AirAsia’s ambition to streamline operations and strengthen its position as a leading low-cost carrier in the region. The Paris Airshow, a key stage for aviation deals, could mark a turning point for AirAsia as it navigates its post-pandemic recovery and fleet modernization.