AirAsia X’s record $26.3b order for Airbus planes

AirAsia X has ordered a record 150 Airbus A220-300 planes, with options for another 150, in a deal worth $26.3 billion. (Yes, billion with a b.)

It is the biggest ever single order for the planes.

And it exemplifies the shift in AirAsia’s future fleet strategy, as it prioritises “operational discipline” and profitability.

AirAsia has also made history as the global launch customer for the high-density 160-seat configuration.

The A220 will give AirAsia X the flexibility to increase flight frequencies on existing routes, giving travellers the choice of multiple daily departures and better connectivity windows.

The A220’s capacity means a flight can be profitable with fewer passengers than the larger narrow-body alternatives.

This will open up “secondary hubs” that were previously commercially not viable.

The order was officially announced at a ceremony at the Airbus facility in Mirabel, Canada.

It was attended by Canada’s Prime Minister Mark Carney, AirAsia group adviser Tony Fernandes and Lars Wagner, chief executive officer of Airbus Commercial Aircraft.

Mr Fernandes says: “In an environment of high fuel prices and volatility, the answer is not to stand still, it’s to double down on efficiency. This aircraft materially improves our fuel burn and trip costs, strengthening our resilience regardless of where the cycle goes.

“We never waste a crisis at AirAsia — we make bold decisions at the right moment, not the easiest moment.”

Mr Wagner adds: “The A220 will provide an optimal platform for AirAsia, combining low operating costs with the latest technology to maximise productivity and also open up new routes across Asia that were not feasible before.

“Everyone at Airbus has been pleased to work with AirAsia to finalise this new contract, which is fully aligned with the airline’s new network strategy.”