AirAsia Signs $12.25-B Deal for 70 New Aircraft, Ushers in Era of Low-Cost Long-Haul Travel

Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim witnesses the signing of a memorandum of understanding between Capital A CEO Tony Fernandes and Christian Scherer, CEO Commercial Aircraft, Airbus, in Paris on Sunday, July 6, 2025. Looking on are Malaysian Cabinet ministers.

AirAsia Signs $12.25-B Deal for 70 New Aircraft, Ushers in Era of Low-Cost Long-Haul Travel

By Bing Jabadan – TheNationWeek.Com  

July 7, 2025

MANILA, Philippines – In a move to become the world’s first low-cost network carrier, AirAsia has signed a $12.25 billion deal with Paris-based Airbus for the acquisition of 70 new aircraft.

The landmark agreement, signed in Paris on Sunday (July 6, 2025), aims to position AirAsia as the world’s first low-cost, narrow-body network carrier to connect underserved routes across continents.

It will also transform Kuala Lumpur, Malaysia, and Bangkok, Thailand, into key aviation hubs.

The memorandum of understanding between AirAsia Berhad, a subsidiary of Capital A Berhad, and Airbus was witnessed by Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim.

“We pioneered low-cost travel in Asia – now, we are taking it to the next level,” declared Tony Fernandes, CEO of Capital A and Advisor & Steward of AirAsia Group.

“AirAsia is on a transformative journey to become the world’s first low-cost network carrier. This is about exponential growth, connecting geographies beyond ASEAN, and making flying even more democratic,” said Fernandes.

Unlocking New Routes, Expanding Horizons

The airline’s new Airbus A321XLR, renowned for its extended range capabilities, will enable AirAsia to efficiently serve longer-range, previously inaccessible routes.

Passengers can now expect new, direct connections to Central Asia, the Middle East, and Europe while benefiting from the airline’s low fares.

“We gave people in ASEAN the opportunity to explore Asia – now we want the world to see ASEAN, and ASEAN to see the world,” Fernandes said.

“The A321XLR and A321LR are the game-changers enabling this vision, and we are proud to lead the charge in making our world smaller. We can’t wait to paint the skies even wider in red.”

Airbus CEO Christian Scherer echoed the sentiment, stating, “The A321XLR unlocks new opportunities for AirAsia to launch non-stop flights linking primary and secondary cities all around the globe.”

Sustainable Growth, Ambitious Goals

The A321XLR’s fuel efficiency is a key component of AirAsia’s long-term strategy.

The aircraft boasts up to 20 percent lower fuel burn per seat compared to the A321neo, significantly improving emissions performance and contributing to the airline’s environmental goals.

The new fleet is integral to AirAsia’s ambitious target of carrying 150 million passengers annually by 2030, ultimately reaching a cumulative total of 1.5 billion passengers.

The deliveries of the A321XLRs are set to begin in 2028 and continue until 2032.

Multi-Hub Strategy, Enhanced Connectivity

By leveraging a multi-hub strategy and operating a diverse fleet of Airbus A320 Family and A330 aircraft alongside the A321XLRs, AirAsia aims to optimize capacity, reduce fuel consumption, and maintain a sustainable, cost-effective growth model in the fiercely competitive global aviation market.

The agreement marks a pivotal moment for AirAsia and the future of low-cost travel.

By bridging the gap between affordability and long-haul destinations, AirAsia is poised to redefine the travel experience for millions of passengers worldwide.