AirAsia Explores Regional Jet Options
AirAsia intends to add regional jets to its fleet and is expected to announce an order at the Paris Air Show. The low-cost airline is discussing with Embraer regarding its E2 jets and Airbus about its A220 models. Airbus may have the advantage in these negotiations, with talks for a potential order of 100 aircraft at an advanced stage.
Currently, AirAsia exclusively operates Airbus aircraft, including sixty-nine A320-200s, twenty-nine A320-200Ns, three A321-200(P2F)s, and eight A321-200NXs. The airline has also placed orders for 331 A321-200NXs and thirty-six A321-200NX(LR)s. Additionally, many more Airbus narrowbody aircraft are used by affiliate airlines within the AirAsia group throughout the Southeast Asian region.
Regional competitor Scoot is finding success with its newly introduced E190-E2 aircraft, servicing smaller cities in the same market as AirAsia. Recently, Reuters reported that Embraer is eager to place a batch of aircraft that were originally intended for the now-dormant Malaysian airline SKS Airways.
AirAsia’s parent company, Capital A, currently holds the status of a Practice No. 17 (PN17) company. This designation, given by Bursa Malaysia, is assigned to listed companies that are considered financially distressed. As a PN17 company, Capital A is required to restructure its finances and reorganize its operations. While the company works toward exiting this status, any future aircraft orders will depend on the terms of financing.
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