Airbus Secures US$1.85 Billion Starlux Deal as AirAsia Talks Remain on Hold

Airbus received a significant boost at the Paris Airshow with a fresh order from Taiwan’s Starlux Airlines, securing 10 additional A350 long-haul aircraft. The latest commitment builds on Starlux’s 2019 order for 17 of the same model and, according to aircraft price estimates from Cirium Ascend, could be valued at approximately US$1.85 billion.

The European aerospace group continued to project confidence, indicating the potential for higher dividends in the future as it steadily accumulated new business during the airshow. This momentum contrasted with a more subdued showing from rival Boeing, which scaled back its presence to prioritise the ongoing investigation into last week’s Air India Boeing 787 crash. Boeing had previously dominated the headlines with large orders secured during US President Donald Trump’s recent Middle East tour.

Despite speculation that Airbus might conclude major deals with AirAsia before the end of the event, discussions appear to have stalled. Tony Fernandes, Chief Executive of Capital A Group—the parent company of AirAsia—confirmed that negotiations are ongoing for 50 to 70 A321XLR aircraft and up to 100 A220 or Embraer E2 regional jets. However, he played down expectations for a near-term agreement, stating that finalising the group’s financial restructuring remains the immediate priority.

“I don’t think there’ll be an order at this air show. We’re still doing a lot of work with Airbus and other manufacturers. I think we’ll look to do something imminently, in the next 1–3 months,” Fernandes told Reuters.

Industry sources suggest Airbus has presented an “aggressive” offer aimed at increasing A220 orders, potentially positioning AirAsia as the launch customer for a proposed 160-seat variant. A larger configuration, still under development, is also reportedly under consideration. However, financing remains a sticking point, contributing to the temporary impasse in negotiations.

Elsewhere at the show, other manufacturers reported notable successes. Embraer confirmed a 60-aircraft order for its E175 regional jet from SkyWest Airlines, alongside purchase rights for an additional 50 units. Meanwhile, Airbus disclosed an order for two A350 freighters from MNG Airlines and revealed EgyptAir as the previously undisclosed customer behind an order for six A350-900s.

Amid strong post-pandemic demand for fuel-efficient aircraft, manufacturers continue to contend with persistent supply chain issues, particularly concerning engine availability. Nonetheless, Airbus reported a 40% reduction in disruption from delayed components at its production sites since the beginning of 2025.

On the defence front, US drone company Anduril and Germany’s Rheinmetall announced a partnership to develop aerial drones for European markets, underscoring efforts to strengthen European defence capabilities by leveraging American technologies.

-Reuters

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