Kuala Lumpur, Malaysia: Capital A, the parent company of AirAsia, has announced the signing of a Memorandum of Understanding (MoU) with Airbus for the purchase of 50 A321XLR aircraft with the option to convert an additional 20 aircraft, bringing the total potential order to 70 aircraft. The agreement was signed during the 2025 Farnborough International Airshow, and marks a key milestone in AirAsia’s strategy to expand its low-cost, long-haul network. Aircraft Capabilities & Strategic Role The Airbus A321XLR (Extra Long Range) is designed to fly up to 8,700 km, enabling airlines to operate longer routes previously not viable with narrow-body aircraft. The introduction of these aircraft will allow AirAsia to open new direct long-haul routes, particularly between Asia, the Middle East, and secondary cities in Europe and North America. According to AirAsia, the A321XLR is a crucial component of its plan to offer cost-effective international connectivity with lower fuel consumption and improved environmental performance compared to widebody aircraft. Long-Haul Expansion Through New Hubs In line with the order, Capital A has also outlined a strategy to establish intermediate hubs in the Middle East, including locations such as Ras Al Khaimah (UAE) and Bahrain. These hubs are expected to serve as connection points for one-stop low-cost flights from Asia to destinations like London Gatwick, Cologne, and Manchester, and potentially cities in the United States. The goal is to replicate AirAsia’s successful point-to-point low-cost model on longer-haul sectors using the fuel-efficient A321XLR. The airline has stated that this expansion is aimed at addressing rising demand for affordable international travel while keeping operational costs competitive. Capital A Financial Restructuring and Integration Plans This announcement comes amid Capital A's broader restructuring initiative. The company is currently merging its short-haul airline business (AirAsia Malaysia) with AirAsia X, its medium-to-long-haul affiliate. This move will unify operations under a single AirAsia brand, streamlining its business model and improving operational efficiency. Capital A has further confirmed plans to exit its PN17 classification, a designation under Bursa Malaysia for financially distressed companies within 2025. The company also plans to issue its first corporate bond by October 2025, signalling investor confidence in its financial turnaround. Group CEO Tony Fernandes said the order aligns with Capital A’s vision to transform AirAsia into a global aviation brand that can compete on ultra-long-haul, cost-efficient routes, while continuing to serve its core ASEAN and Asian markets. Recent Route Developments As part of its regional growth, AirAsia X recently launched direct services to Karachi, Pakistan, achieving an inbound load factor of 95% and 80% outbound on its initial flights. The airline described this as a positive response from the South Asian market and plans to increase frequency depending on demand. In a separate update, AirAsia MOVE (formerly AirAsia Super App) introduced several tech enhancements, including biometric login, dynamic pricing bundles, and promotional campaigns under the tagline "Travel More for Less" across the Thai and ASEAN markets.
Malaysia

AirAsia to Acquire Up to 70 Airbus A321XLRs, Plans Low-Cost Flights to Europe & US

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Kuala Lumpur, Malaysia: Capital A, the parent company of AirAsia, has announced the signing of a Memorandum of Understanding (MoU) […]