Airbus moves closer to A220 deal with AirAsia after months of talks

Airbus is close to finalizing a deal to sell around 100 A220 aircraft to AirAsia, with options for roughly 50 additional jets, a transaction that would mark the airline’s entry into the smaller narrowbody segment, according to Reuters.

The aircraft would be used to complement AirAsia’s existing fleet by covering regional routes where larger A320-family jets are less efficient.

Discussions around a possible A220 order have been ongoing for an extended period. Interest in a higher-density version of the aircraft, with seating approaching 160 passengers, was already circulating ahead of last year’s Paris Airshow, indicating that the talks have gone beyond a short-term commercial push and into detailed fleet planning. The scale of the potential order would represent a significant commitment to a new aircraft category for the group.

Those talks have not been exclusive. Over the same period, AirAsia has also held conversations with Embraer as it evaluated alternatives in the same capacity range. The Brazilian manufacturer has been seeking an opening with the airline through its E2 family, as AirAsia considers how best to serve thinner regional markets while maintaining low unit costs and operational flexibility.

The fleet discussions are taking place as AirAsia works to return to growth following several years of disruption. Management has indicated that smaller aircraft are seen as a tool to open new destinations and increase frequencies without the capacity risks associated with larger narrowbodies, while keeping the group’s fleet strategy adaptable as demand recovers across Southeast Asia.

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Ricardo Meier

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