AirAsia is in advanced discussions with Airbus to convert part of its existing narrow-body aircraft orders into long-range A321XLR jets, according to two industry sources. The move comes as the low-cost airline positions itself for recovery following a period of financial restructuring.
Tan Sri Tony Fernandes, Chief Executive Officer of Capital A Group—the parent company of AirAsia—previously told Reuters that negotiations were under way to acquire between 50 and 70 of the long-range A321XLR models. While Fernandes expressed strong interest in sealing a deal within one to three months, he underscored that completing the company’s ongoing financial reorganisation remained the immediate priority.
Sources indicate that a potential agreement could materialise as early as this week, coinciding with Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Paris. However, a third source noted that no final agreement has been confirmed at this stage.
AirAsia, headquartered in Malaysia, is among the largest low-cost carriers in Asia and one of Airbus’ most significant customers, with more than 350 aircraft currently on order. In response to the severe downturn in aviation during the COVID-19 pandemic, the airline has been methodically restructuring its order book to align with revised operational and financial strategies.
The proposed shift to the A321XLR would not necessarily increase the total volume of AirAsia’s aircraft orders with Airbus but would support the manufacturer’s longest-range narrow-body offering. Discussions around a potential large-scale order of Airbus’ smaller A220 aircraft have been deprioritised for the time being, according to the sources.
Fernandes has articulated a vision to expand AirAsia’s global footprint, identifying long-range aircraft as a critical component of that ambition. This week, he disclosed that AirAsia is actively exploring the establishment of a Gulf-based hub, with ongoing negotiations in four locations including Saudi Arabia and Ras Al Khaimah in the United Arab Emirates, as he told Dubai Eye radio.
Bloomberg News also reported on Thursday that a potential aircraft order announcement could coincide with the Prime Minister’s Paris visit, though again, it stressed that a deal is not guaranteed.
Neither Airbus nor AirAsia have provided official comment in response to these developments.
-Reuters
