Kuala Lumpur: Airbus has confirmed today that AirAsia Bhd has placed an order for 150 A220 aircraft, the largest order for the model so far.
Lars Wagner, Airbus chief executive officer of the Commercial Aircraft business, announced it in Mirabel, Quebec, Canada, at 2.30 pm Wednesday (3 am local time).
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Also present was Capital A Bhd chief executive officer Tan Sri Tony Fernandes, who is also the founder of the Malaysian low-cost airline.
“This order is a massive vote of confidence in this facility, and in the people of Mirabel, of Quebec, and of Canada. And actually, every aircraft Fernandes will receive that comes out of the Mirabel facilities.
“It demonstrates as well that it was right for us to bring the A220 under the wings of the full Airbus portfolio. Let’s go and build these planes from this hangar and get them into your fleet as soon as possible. Let me end by saying, in my words, today is a win-win day,” Wagner said in his speech.
Canadian Prime Minister Mark Carney witnessed the landmark deal announcement.
Wagner said with AirAsia’s order, the twinjet has now surpassed 1,100 orders, describing it as a great milestone for the A220 programme.
He also said Airbus’ game-changing aircraft would allow AirAsia to connect to cities that haven’t been connected so far.
“And the A220, as everyone, I’m sure, in this room knows, is the only clean-sheet design in its class, and that is shown by the numbers, minus 25 per cent of fuel burn reduction and CO2 reduction,” he added.
A220, the smallest in Airbus’ commercial jet lineup, is a narrow-body aircraft designed for short to medium-haul routes. It is purpose-built for the 100 to 160-seat aircraft category.
AirAsia Bhd’s order for 150 A220 jets will cost the airline around US$19 billion, its advisor Tan Sri Tony Fernandes said.
Fernandes, who is also the Capital A chief executive officer, expects the first delivery of the A220 aircraft by the first quarter of 2028 at the latest.
He said the A220 unlocks new markets and routes, bringing them closer to building the world’s first true low-cost network carrier.
“An aircraft with 160 seats enables us to actually improve our margin by about two to three points and also build a much deeper network.
“This aircraft can also fly up to seven hours, and in Asia, that has a lot of value for us,” he told reporters after the signing ceremony on the deal, which was telecast live from Mirabel, Quebec, Canada.
Earlier, in his speech, Fernandes also expressed his interest in possibly buying another 150 aircraft if the manufacturer builds the stretched version, known as the A220-500, which would likely accommodate around 185 seats.
“This is a US$19 billion deal, which can grow to US$38 billion, if we can have the large version,” he said.
On why he needed the larger version of the A220 programme, Fernandes said the lifespan of the present A320s is ending, and the 180-seat jet would be a perfect replacement.
“People are wondering why we are buying so many planes during this latest crisis, but crises are an opportunity to make bold decisions.
“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,” he said on the multi-billion-dollar deal.
“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.”
Earlier, Airbus chief executive officer of the Commercial Aircraft business Lars Wagner, confirmed the landmark deal, which saw the A220 model surpass the 1,100-order level.
Canadian Prime Minister Mark Carney was also present at the deal signing ceremony.
