AirAsia plans major narrowbody order as Fernandes flags A330neo review

AirAsia plans to announce a significant order for small narrowbody jets in March, chief executive Tony Fernandes said, as the group expands into new markets and targets first-time travelers in Asia.

Industry sources say the airline is poised to order up to 150 Airbus A220 aircraft, a model positioned below the A320neo family in capacity and still seeking large-scale commitments in Southeast Asia. Embraer is competing with its E2 family for the deal.

Fernandes said the order would be larger than previously reported but did not disclose figures. He added that the group no longer needs a pending order for 15 Airbus A330neo widebodies, signaling a possible cancellation or restructuring of that commitment.

The comments came as AirAsia unveiled plans to establish a hub in Bahrain. The airline intends to launch flights between Kuala Lumpur and London via Bahrain from June 26, using widebody aircraft.

Fernandes also said the group plans to set up a subsidiary in Bahrain that could operate up to 100 aircraft over time. AirAsia’s current fleet comprises 258 jets, including 30 Airbus A330-300 widebodies and the remainder from the A320 family.

The airline also holds 347 pending orders for the Airbus A321neo, including the ultra-long-range A321XLR variant, underscoring its focus on higher-capacity single-aisle aircraft for regional and medium-haul growth.

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