Mirabel, Canada: Malaysia-based low-cost carrier AirAsia has signed a landmark agreement with Airbus for 150 Airbus A220-300 aircraft, marking the largest single order ever placed for the A220 programme and giving a major boost to the Canadian-built jetliner amid intensifying competition in the small narrowbody market.
The agreement was announced during a ceremony at Airbus’ Mirabel facility in Quebec, Canada, attended by AirAsia Chief Executive Officer Tony Fernandes, Airbus Commercial Aircraft CEO Lars Wagner, and Canadian Prime Minister Mark Carney.
In addition to the firm order, AirAsia secured options for another 150 aircraft tied to Airbus’ proposed stretched A220-500 variant, which has not yet been officially launched. Fernandes publicly committed to becoming the launch customer if Airbus proceeds with development of the larger model.
“This plane was built to be stretched,” Fernandes told Reuters during the signing event, expressing confidence that Airbus would move ahead with the larger variant capable of seating around 180 passengers.
The deal represents a major strategic win for the A220 programme, formerly known as the Bombardier CSeries before Airbus acquired control of the programme in 2018. The aircraft is assembled primarily at Airbus’ Mirabel facility in Quebec for international customers, while U.S.-bound aircraft are produced in Mobile, Alabama.
Airbus said the order pushes total A220 programme sales beyond the 1,000-aircraft milestone, reinforcing the jet’s growing role in the 100- to 160-seat market segment. Industry analysts view the agreement as especially significant because the A220 programme has struggled for profitability despite growing operator acceptance worldwide.
The European manufacturer has been attempting to increase A220 production rates while facing mounting competition from Brazil’s Embraer E2 family. Embraer outsold the A220 three-to-one last year and recently secured a major order campaign with Finnair.
Airbus aims to raise A220 production toward 12 aircraft per month in the coming years as it works to improve programme economics.
AirAsia’s order is centered on the A220-300, the larger current variant of the aircraft family. The airline will also become the launch customer for a newly certified 160-seat cabin layout featuring additional overwing emergency exits, allowing greater passenger density while maintaining the aircraft’s fuel-efficiency advantages.
The airline currently operates an all-Airbus fleet and already has more than 350 A320-family aircraft on order. Fernandes indicated that a future A220-500 could eventually replace portions of AirAsia’s A320 fleet, while the group would continue focusing larger-capacity growth around the A321neo family.
“If you build it, AirAsia will buy 150,” Fernandes said during the ceremony while addressing Airbus executives regarding the proposed A220-500.
The proposed A220-500 has emerged as a potentially critical aircraft for Airbus as airlines increasingly seek fuel-efficient narrowbody aircraft positioned between regional jets and larger single-aisle aircraft such as the A321neo and Boeing 737 MAX family. Airbus executives said a decision on whether to proceed with the stretched variant could come later this year.
Industry sources estimate the agreement’s value at approximately US$19 billion based on list prices, although aircraft transactions typically involve substantial confidential discounts.
The order also delivers a major economic boost for Canada’s aerospace sector and Quebec’s government-backed investment in the programme. Quebec retains a minority stake in the A220 programme through Investissement Québec, while the Canadian federal government has also supported the programme financially since its Bombardier era.
The announcement comes as airlines globally continue adjusting operations amid elevated fuel prices and supply chain disruptions linked to geopolitical tensions in the Middle East. Fernandes said AirAsia had recently reduced some flights due to rising fuel costs but expressed confidence the carrier would restore normal scheduling by July.
