Business

Airbus A220 deal will cost US$19 billion - Fernandes

Fernandes also expressed his interest in possibly buying another 150 aircraft if the manufacturer builds the stretched version, known as the A220-500, which would likely accommodate around 185 seats.

Updated 4 months ago · Published on 07 May 2026 9:22AM

Airbus A220 deal will cost US$19 billion - Fernandes
He said the A220 unlocks new markets and routes, bringing them closer to building the world's first true low-cost network carrier. - May 7, 2026

AIRASIA Bhd’s order for 150 A220 jets will cost the airline around US$19 billion, its advisor Tan Sri Tony Fernandes said. Fernandes, who is also the Capital A chief executive officer, expects the first delivery of the A220 aircraft by the first quarter of 2028 at the latest.

He said the A220 unlocks new markets and routes, bringing them closer to building the world's first true low-cost network carrier.

"An aircraft with 160 seats enables us to actually improve our margin by about two to three points and also build a much deeper network.

"This aircraft can also fly up to seven hours, and in Asia, that has a lot of value for us," he told reporters after the signing ceremony on the deal, which was telecast live from Mirabel, Quebec, Canada.

According to Bernama, earlier, in his speech, Fernandes also expressed his interest in possibly buying another 150 aircraft if the manufacturer builds the stretched version, known as the A220-500, which would likely accommodate around 185 seats.

“This is a US$19 billion deal, which can grow to US$38 billion, if we can have the large version,” he said.

On why he needed the larger version of the A220 programme, Fernandes said the lifespan of the present A320S is ending, and the 180-seat jet would be a perfect replacement.

"People are wondering why we are buying so many planes during this latest crisis, but crises are an opportunity to make bold decisions.

“We have built AirAsia by making bold decisions at the right moment, not the easiest moment. This order reflects our long-term discipline and the scale of our ambitions," he said on the multibillion-dollar deal.

“Our partnership with Airbus spans more than two decades and has been central to everything we have achieved. Today is another milestone in that journey, and there are many more to come.”

Earlier, Airbus's chief executive officer of the Commercial Aircraft business, Lars Wagner, confirmed the landmark deal, which saw the A220 model surpass the 1,100-order level.

Canadian Prime Minister Mark Carney was also present at the deal signing ceremony. – May 7, 2026

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