Big Deal: AirAsia, Airbus Sign KRW 16 Trillion Aircraft MoU

Priyal DuttaUpdated 1 day Ago1 Mins read102 Views

Big Deal: AirAsia, Airbus Sign KRW 16 Trillion Aircraft MOU

The signing ceremony of the Memorandum of Understanding between AirAsia and Airbus for the introduction of new aircraft was attended by many distinguished guests, including Christian Shearer, CEO of Airbus' Commercial Aircraft Business Unit, Malaysian Prime Minister Anwar Ibrahim, and Tony Fernandez, CEO of Capital A (fourth from the right).

AirAsia Signs KRW 16 Trillion Airbus Deal for 70 New Aircraft

AirAsia has signed a Memorandum of Understanding with Airbus to purchase 70 aircraft, including 50 A321XLR planes and 20 options. The deal, valued at $12.25 billion (around KRW 16.7 trillion), was signed on July 5 in Paris. Aircraft deliveries are scheduled to begin in 2028 and continue through 2032.

The A321XLR is a long-range, fuel-efficient aircraft that can reduce fuel use by up to 20% per seat compared to earlier models. AirAsia plans to use these planes to expand its long-haul network and improve operational efficiency.

AirAsia CEO Tony Fernandes stated that the new aircraft would support the airline’s goal of expanding its global route network while maintaining affordable air travel. The airline plans to expand from 143 to 175 destinations within five years, focusing on routes to Central Asia, the Middle East, Africa, Europe, and the Americas.

Currently, AirAsia operates 255 aircraft and aims to increase its fleet to over 500 by 2035, with a target of carrying 1.5 billion passengers by 2030.

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Priyal Dutta - Senior Correspondent/Content Writer

I create compelling stories that showcase the travel, hospitality, and lifestyle industries. At Safari India, I explore industry trends, write insightful articles, and produce content that informs and engages readers. With a talent for storytelling and a strategic approach, I strive to inform, inspire, and spark meaningful conversations through my work.