Budget Carrier Books $15B Airbus Order

AirAsia is targeting “new markets and routes” with an order for 150 A220 aircraft, the largest single booking to date for that smaller twin-engine series.

Airbus has landed an estimated $15-billion order for 150 of its A220 series aircraft from AirAsia, a low-cost carrier centered in Kuala Lumpur, Malaysian carrier and longtime Airbus operator. It is the largest order yet for the A220 series, which has a total of about 500 aircraft in service.

Competing for market share with the Embraer E-Jet regional aircraft, the Airbus A220 series a current production rate of about 12 aircraft per month, far less popular than the larger A320neo,

The new booking is the largest order by volume to date for Airbus in 2026, which recorded 398 new orders during Q1, a 95% increase over Q1 2025. The two A220 variants have registered a total of 959 orders since 2009, with a current backlog of 458 prior to the AirAsia booking.

The Airbus A220 is a narrow-body, twin-engine jet developed by Bombardier as the C-Series aircraft for high-volume, short-to-medium range routes. Airbus acquired a majority stake in the program in 2018, maintaining the original assembly operations near Montreal but also adding an assembly line at its A320 plant in Mobile, Ala.

AirAsia’s order also will involve hundreds of Pratt & Whitney GTF engines to power the 150 aircraft, and engine maintenance services under a 12-year comprehensive service agreement.  

“The A220 will provide an optimal platform for AirAsia, combining low operating costs with the range that will enable the carrier to open new routes across Asia and beyond,” stated Airbus Commercial Aircraft CEO Lars Wagner. “Airbus and AirAsia teams have been working tirelessly to reach this landmark agreement, which is fully aligned with the airline’s new network strategy.”

AirAsia serves dozens of markets across Asia, Southeast Asia, and the Middle East, including in Australia, China, India, Indonesia, Japan, New Zealand, and Taiwan. It operates under various affiliated brands, including Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and Cambodia AirAsia.

The carrier also will be the launch customer for a new configuration of the A220-300, with 10 more seats added to accommodate up to 160 passengers.

“The A220 unlocks new markets and routes and brings us closer to building the world's first true low-cost network carrier,” stated Tony Fernandes, a private-investment group CEO and advisor to Air Asia Group.

About the Author

Robert Brooks

Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

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