Paris, July 5 - French President Emmanuel Macron announced, on July 4, 2025, a landmark deal between Airbus and Malaysia during a high-profile visit by Malaysian Prime Minister Anwar Ibrahim to Paris. The agreement, described by Macron as "historic," underscores a significant step in strengthening economic ties between France and Malaysia, while highlighting the broader importance of trade between Europe and Asia. The announcement was made during a joint statement at the Elysee Palace, where Macron hosted Anwar, marking the first visit by a senior Malaysian leader to France in 15 years. This deal, centered on the aviation sector, is part of a broader effort to deepen bilateral cooperation across multiple industries, including key minerals, energy transition, and defense.
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The Airbus deal involves Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, ordering 20 A330neo long-haul jets, valued at approximately $7.5 billion before industry discounts. Additionally, AirAsia, one of Southeast Asia’s largest low-cost carriers, signed a memorandum of understanding for up to 70 A321XLR aircraft, with a potential value of $12.3 billion, including options for 20 additional planes. These agreements reflect Malaysia’s commitment to modernizing its aviation sector, with Malaysia Airlines aiming to replace outdated A330-300s to enhance fuel efficiency and support a hub-and-spoke model for long-haul routes. AirAsia’s order aligns with its strategy to expand its network, targeting new routes in China, India, and the Asia-Pacific, and potentially establishing a Gulf hub to reach European destinations. The A321XLR’s long-range capabilities allow AirAsia to explore cost-effective operations for mid-haul and intercontinental flights, optimizing its fleet for post-pandemic travel demand.
Macron emphasized that these agreements are a testament to the robust trade relationship between France and Asia, particularly as Europe navigates potential economic challenges, such as looming tariffs from the United States. The French president framed the deal as part of a broader strategic partnership, citing additional cooperation in rare earths with the French company Carester, which recently opened a factory in Lacq, and advancements in energy transition. Anwar echoed Macron’s sentiments, noting that the aviation deals signal Malaysia’s growing role in the global aerospace industry, with plans to expand aircraft component manufacturing in collaboration with French firms. The Malaysian government also announced intentions to procure two maritime patrol aircraft for its navy, further deepening defense ties with France.
This deal positions Airbus as a key player in Southeast Asia’s aviation market, capitalizing on the region’s growing demand for air travel. With a combined value of approximately $20 billion, the agreements bolster Airbus’s order backlog and reinforce its competitive edge over rivals like Boeing, especially as the European manufacturer scales up A330neo production. The partnership not only strengthens France-Malaysia relations but also underscores Airbus’s role in supporting Malaysia’s vision for a future-ready aviation ecosystem, fostering sustainable growth and regional connectivity.