AirAsia to purchase 70 Airbus A321XLR jets for over RM50bil

AirAsia to purchase 70 Airbus A321XLR jets for over RM50bil

According to the low-cost carrier, the delivery of the aircraft will be confirmed by 2028.

airbus a321
AirAsia said it intends to use its new Airbus A321XLR fleet to serve Central Asia, the Middle East and Europe, among others. (EPA Images pic)
PARIS:
The signing of an agreement between AirAsia and Airbus for the purchase of A321XLR aircraft will further strengthen the airline’s operational capabilities for short- and medium-haul routes, says Prime Minister Anwar Ibrahim.

Speaking after witnessing the signing ceremony here on Friday, Anwar said the acquisition will not only enable the airline to expand its network but also support Malaysia’s aspiration to emerge as a leading aviation hub in Asia.

Earlier, AirAsia inked a memorandum of understanding with Airbus for 50 A321XLRs with conversion rights for another 20 A321XLRs.

The deal is worth US$12.25 billion (RM51.72 billion) with deliveries confirmed by 2028.

The low-cost carrier said the new fleet is targeted to serve Central Asia, the Middle East and Europe, among others.

The agreement was signed by Capital A Bhd’s CEO, Tony Fernandes, and Airbus Commercial Aircraft’s CEO, Christian Scherer, witnessed by Anwar.

Fernandes said the next-generation A321XLRs will operate alongside AirAsia’s all-Airbus fleet of A320 family and A330 aircraft, and aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception.

He said AirAsia plans to finance the aircraft order through bank leases.

He also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details.

Anwar also witnessed the MoU exchange between 3P Capital Advisers and Ardian, a leading private investment firm from France, for the exploration of investment opportunities in the private markets.

The private sector initiative can give Malaysians a wider access to alternative investments, Anwar said.

During his meeting with Imerys, an industrial mineral processing company that has been operating in Malaysia for over 25 years, Anwar said the company expressed its commitment to expand operations and support the development of a high-value, environmentally-friendly manufacturing sector in the country.

Anwar also held a meeting with the management of Arkema, a global leader in specialty chemicals, which is evaluating potential new investments in Malaysia.

According to him, the company can potentially create more high-skilled jobs, expedite technology transfer, and enhance Malaysia’s position as a major bioeconomy hub in the Asian region.

Anwar led a Malaysian delegation to the French capital in conjunction with a two-day official visit to the country.

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