KUALA LUMPUR – AirAsia has signed a US$12.25 billion (RM51.72 billion) agreement with Airbus for the purchase of 70 A321XLR aircraft, with deliveries confirmed by 2028, paving the way for long-haul low-cost flights to Europe and beyond.
The deal – comprising 50 firm orders and rights for another 20 – was inked in Paris between Capital A Bhd CEO Tan Sri Tony Fernandes and Airbus Commercial Aircraft CEO Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim.
“This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world’s first low-cost multihub network carrier,” Fernandes said during a virtual briefing held in conjunction with the signing ceremony, Bernama reported.
“This will enable us to fly to Europe, and we’re hoping to launch our first European flight this year,” he added.
The new fleet is also targeted to serve Central Asia and the Middle East, among others.
Meanwhile, Anwar said the acquisition would strengthen AirAsia’s short- and medium-haul capabilities while supporting Malaysia’s push to become a key aviation hub.
He said that the signing of an agreement between AirAsia and Airbus for the purchase of A321XLR aircraft will further strengthen the airline’s operational capabilities for short- and medium-haul routes.
Speaking after witnessing the signing ceremony, Anwar added the acquisition will not only enable the airline to expand its network, but also support Malaysia’s aspiration to emerge as a leading aviation hub in Asia.
The A321XLR aircraft will operate alongside AirAsia’s all-Airbus A320 and A330 fleet, and the group aims to carry 150 million guests annually by 2030 – hitting a cumulative total of 1.5 billion since inception.
AirAsia plans to finance the order through bank leases. Fernandes also said the group would announce another aircraft order next month, but declined to elaborate.
Meanwhile, he confirmed plans to issue the group’s first bond by October.
“This is the first time in our history that we’ve been rated by international credit rating agencies,” he said.
“As interest rates begin to moderate, which I’m hopeful will happen soon, it’s only natural for us to return to our traditional model of owning aircraft.
“Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We’re now reassessing that strategy,” he added.
On the group’s restructuring, Fernandes said Capital A plans to resubmit its decision letter to Thailand’s Securities and Exchange Commission in the next week or two.
“Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),” he said.
He added that six of the group’s non-airline businesses – Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) – are currently exploring the possibility of a dual listing in Hong Kong.
As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes stressed: “The AirAsia Group itself will be listed in Malaysia.” – July 5, 2025