AirAsia announced an order for 150 Airbus A220 aircraft worth a total of around US$19 billion, according to the company's advisor, Tony Fernandes.
Fernandes, who is also the CEO of Capital A, said the first deliveries of the aircraft are expected to begin by the first quarter of 2028 at the latest.
According to him, the Airbus A220 aircraft will open up potential new routes and markets for AirAsia, thus helping the company build a wider and more efficient global low-cost airline network.
The 160-seat aircraft is expected to be able to increase the company's profit margin by around two to three percentage points in addition to offering flight capabilities of up to seven hours, something that is considered very valuable for operations in the Asian region.
Fernandes also expressed interest in adding another 150 aircraft if Airbus produces a longer version known as the Airbus A220-500 that can carry around 185 passengers.
According to him, the total value of the deal could potentially increase to US$38 billion if the additional orders are realised in the future.
He explained that the large-scale purchase was made at a time when the aviation industry is still facing global challenges as crises often open up space for long-term strategic decisions.
Fernandes also stressed that the new aircraft would be an ideal replacement for the existing Airbus A320 fleet which is approaching the end of its operational life.
Meanwhile, Airbus Commercial Aircraft Business Chief Executive Officer Lars Wagner confirmed the deal, which also saw the A220 model surpass more than 1,100 global orders.
The signing ceremony took place in Mirabel, Quebec, Canada and was also attended by Canadian Prime Minister Mark Carney.
