Airbus Close to Selling 100 A220 Jets to AirAsia

• The deal would make AirAsia the first buyer for a potential high-density, 160-seat version of the A220, after discussions that began ahead of the 2025 Paris Airshow
• AirAsia's parent company Capital A was classified as financially distressed (PN17 status) by Malaysia's stock exchange following pandemic travel restrictions, though it has now finished its regularization plan
• AirAsia is considering ordering a further 150 jets for regional operations as it expands to new destinations, while consolidating aviation businesses under AirAsia X to reduce costs

Airbus Nears Major A220 Deal with AirAsia for 100 Aircraft

Airbus is close to finalizing an agreement to sell approximately 100 A220 regional narrowbody jets to AirAsia, marking the budget carrier's first venture into this aircraft category, according to industry sources. The deal could include options for an additional 50 aircraft and may be announced within days.

Key Details:

• Main order: ~100 A220 jets
• Additional options: ~50 aircraft
• Potential configuration: High-density, 160-seat version
• Timeline: Announcement expected within days

Strategic Context:

AirAsia, Asia's largest low-cost carrier, is already one of Airbus' biggest customers with over 350 A320-family aircraft on order. In July 2025, the airline ordered 50 A321XLR long-range aircraft. Deputy Group CEO Farouk Kamal indicated the airline is considering ordering an additional 150 jets overall for regional operations to support new destinations.

Competitive Landscape:

Discussions regarding this deal first emerged before the 2025 Paris Airshow, with Brazil's Embraer also competing to break Airbus' exclusive relationship with AirAsia. If confirmed, AirAsia would become the launch customer for the 160-seat A220 variant.

Corporate Recovery:

Parent company Capital A was classified as financially distressed (PN17 status) by Malaysia's stock exchange following pandemic-related challenges. Co-founder Tony Fernandes announced Friday that the group has completed its regularization plan and is working toward recovery. The consolidation of AirAsia-branded aviation businesses under AirAsia X aims to support operational expansion and cost reduction while Capital A focuses on financial rehabilitation.

Both Airbus and AirAsia declined to comment on the pending transaction.