AirAsia has placed one of the largest orders for Airbus’s A220 aircraft programme, agreeing to purchase 150 A220-300 jets in a deal valued at approximately $19 billion, according to statements made during the announcement at Airbus’s Mirabel manufacturing facility in Quebec, Canada.
The agreement marks a significant boost for Airbus’s Canadian production operations and provides fresh momentum for the European planemaker’s efforts to scale up output on the A220 programme, which it acquired from Bombardier in 2018.
AirAsia founder and chief executive Tony Fernandes said the order could eventually expand further if Airbus launches a larger version of the aircraft.
“This is a $19bn deal which can grow to $38bn,” Fernandes said during the announcement, according to the Financial Times.
Under the current agreement, AirAsia will purchase 150 A220-300 aircraft, each capable of seating up to 160 passengers.
Fernandes said the airline would consider ordering an additional 150 aircraft if Airbus proceeds with a stretched version of the jet, referred to as the A220-500, which could accommodate around 185 passengers.
“That’s the aircraft we really want,” Fernandes said at the Mirabel facility, where Airbus assembles the A220-300 aircraft.
“If they build that aircraft, AirAsia will buy another 150 of these aircraft as well.”
The comments underline growing market interest in a larger A220 platform capable of serving high-density regional and medium-haul routes.
The order represents a major endorsement for Airbus’s Canadian aerospace operations, particularly its Mirabel production site in Quebec.
Airbus currently assembles A220 aircraft at two locations:
Canadian Prime Minister Mark Carney described the agreement as Canada’s largest-ever commercial aircraft order.
According to the Financial Times, Carney said the transaction demonstrated the country’s efforts to strengthen global trade partnerships and diversify economic relationships beyond the United States.
“You are choosing the best at exactly the right time,” Carney told Fernandes during the event.
Fernandes linked the agreement to broader cooperation between Canada and Southeast Asia.
“This deal brings two great middle powers together, ASEAN and Canada,” he said.
The agreement comes as Airbus accelerates efforts to increase A220 production rates in order to improve profitability on the programme.
The A220 has historically faced profitability challenges following Airbus’s takeover of the programme from Bombardier.
According to Airbus:
Production expansion has become increasingly important as Airbus works to improve economies of scale and meet growing airline demand for fuel-efficient narrowbody aircraft.
The ramp-up has also become more complex following Airbus’s integration of assets from Spirit AeroSystems.
This includes the Belfast facility in Northern Ireland, which manufactures wings for A220 aircraft.
Industry analysts said the AirAsia order had likely been under negotiation for an extended period.
Former Air Canada executive and McGill University aviation management lecturer John Gradek told the Financial Times the transaction had been in development for more than a year.
He also suggested AirAsia had secured substantial pricing discounts as part of the agreement.
“It’s a great airplane, but the discounts mean Airbus have to get the production up,” Gradek said.
He added that the success of the programme would depend heavily on Airbus’s ability to increase manufacturing speed and delivery rates.
The AirAsia agreement highlights continued demand among low-cost carriers for fuel-efficient narrowbody aircraft capable of supporting regional and medium-haul network expansion.
The A220 programme has increasingly positioned itself as an aircraft suited for airlines seeking lower operating costs, improved fuel efficiency and flexible seating capacity.
For Airbus, the AirAsia order provides additional long-term production visibility at a time when global airlines continue renewing fleets and expanding operations following the recovery in international travel demand.
The transaction also reinforces the strategic importance of the Mirabel facility within Airbus’s global manufacturing network as the company pushes to scale output across one of its most closely watched aircraft programmes.
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