AirAsia orders at least 50 Airbus A321XLR planes

AirAsia has signed a deal to buy 50 Airbus long-range A321XLR planes with conversion rights for another 20, as the budget airline nears the end of a restructuring process, Tony Fernandes, CEO of AirAsia owner Capital A Group said on Friday.

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Reuters reported last month that CEO Tony Fernandes was in talks to buy 50 to 70 of the latest Airbus model, which would include the ability to convert some of the airline's large, existing Airbus order book into A321XLR orders.

Malaysia-based AirAsia is one of Asia’s largest low-cost carriers and one of Airbus’ largest customers, with around 360 planes on order.

Fernandes said the airline intends to order another 150 jets within a month, which would complete the carrier's fleet strategy for the time being.

Fernandes did not say which models would be ordered, but confirmed that AirAsia remains in previously reported talks for a potentially large order of smaller planes, either the Airbus A220 or Embraer E2 regional jet.

Capital A, hardhit by pandemic travel restrictions, was classified by Malaysia’s stock exchange as financially distressed in 2022. Fernandes hopes to exit this so-called PN17 status soon, he said.

Capital A is in the process of selling its AirAsia aviation business to long-haul unit AirAsia X to consolidate long and short-haul operations under a single AirAsia brand.

After this disposal takes place, Capital A should exit PN17 status, Fernandes said.