MONTREAL, May 5 – Malaysian carrier AirAsia is preparing to unveil a substantial aircraft purchase Wednesday, with sources indicating the airline will order roughly 150 Airbus A220 jets, providing much-needed momentum for the European manufacturer’s compact airliner program.
The A220 aircraft are manufactured at facilities in Mirabel, Quebec, just outside Montreal, as well as at an additional production facility located in Mobile, Alabama. Quebec maintains a partial ownership interest in the A220 program, with international customers receiving planes built at the Canadian location.
According to anonymous sources familiar with the private negotiations, Canadian Prime Minister Mark Carney is scheduled to be present for the Montreal-area announcement. Representatives from Airbus Canada and Carney’s office refused to provide statements regarding either the aircraft order or the planned event, noting that arrangements could still be modified or postponed.
AirAsia representatives were unavailable for immediate comment during off-business hours.
Earlier reports about this significant A220 purchase appeared Tuesday in French publication La Presse and Monday in Bloomberg. Reuters previously indicated in February that AirAsia was considering a substantial A220 order, with sources suggesting the agreement might encompass 150 confirmed aircraft purchases for the 110-to-130-passenger jets.
This announcement represents welcome developments for the A220 program, which has faced recent challenges as competitor Embraer’s E2 aircraft secured a contract with Finnair in March and achieved sales figures three times higher than the A220 last year.
Airbus continues efforts to increase A220 manufacturing rates to achieve profitability on the program, which the company acquired from Canadian manufacturer Bombardier in 2018 essentially without cost. The global aviation giant has established goals to produce 12 A220 aircraft monthly by 2026, reducing previous projections of 14 units due to supply chain issues and airlines awaiting improved engine technology.
Canada’s aviation sector has experienced less disruption compared to industries like automotive manufacturing during trade tensions with the United States, as Washington excludes aerospace products from tariff policies.
AirAsia has spearheaded the expansion of budget airline services across the region over the past twenty years as regional prosperity has increased. The carrier represents one of Airbus’s largest clients, maintaining orders for over 350 of the manufacturer’s larger A320-series aircraft.
AirAsia Co-founder Tony Fernandes previously indicated to Reuters that the company was prepared to diversify its aircraft fleet by selecting smaller planes to serve additional routes.
This development occurs as aviation industry turbulence from elevated fuel costs related to the U.S.-Israeli conflict with Iran has prompted airlines to reduce flight schedules.
