Southeast Asia’s AirAsia signed a $19 billion deal to buy 150 Canadian-made Airbus A220-300 jets, the two companies said, with the low-cost carrier adding Thursday that it could double the order to meet future demand.
The deal, announced at the plane-maker’s facility in Mirabel, Canada, represents the biggest order in that country’s history, with AirAsia co-founder Tony Fernandes calling it “the perfect tool for our next phase of growth”.
“This order reflects our long-term discipline and the scale of our ambitions,” he said in a statement.
Southeast Asia’s largest low-cost carrier said the agreement had “the strategic flexibility to upsize the commitment to 300 of the A220 Aircraft Family to meet future demand”.
Airbus Commercial Aircraft CEO Lars Wagner said the A220 planes will “open up new routes across Asia that were not feasible before”.
The deal comes as the aviation industry grapples with soaring jet fuel prices driven by the US-Israeli war with Iran that has raised the spectre of shortages that could force airlines to cancel flights.
Air Asia announced last month it was cutting more flights and even some connections without providing an overall figure.
The Malaysia-based no-frills airline said it was also raising fares by up to 40 percent and about 10 percent of its overall flights had been cut so far at the time.
ANEWS wp:paragraph
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