AirAsia gives Airbus $12.5bn order for 100 A321neo planes

LONDON: Malaysian low-cost carrier AirAsia Berhad announced a $12.5-billion firm order to buy 100 A321neo aircraft from

Airbus

at the Farnborough air show on Tuesday. The airline co-owns AirAsia India, the Bengaluru-based carrier which operates domestic flights to 10 destinations within the country.

Addressing a press conference, Tony Fernandes, CEO, AirAsia Group, said that it was the first time that AirAsia has ordered this aircraft. “Low-cost airlines generally operate around 180-seat aircraft. AirAsia’s A320s are 180 seaters, but now we have moved in a new direction. The A321 aircraft can accommodate 240 seats, but AirAsia A321s will have 236 seats for passenger comfort,” said Fernandes. The announcement sees the total number of A320 family planes ordered by AirAsia rise to 575. The airline is already the largest A320 operator in the world with over 170 A320s flying with its units in India, Malaysia, Thailand, Indonesia and the Philippines. The A321 induction begins only in 2019.

Whether the A321s will be brought into the Indian market remains to be seen.

Amar Abrol, CEO, AirAsia India, said: “The option is there to draw on the parent. However, every decision will be evaluated commercially.” For now, AirAsia will concentrate on growing its aircraft fleet to 20 so as to begin international operations. “I already have a board-approved target to get to 20 aircraft. I don’t need to wait for A321 to get to 20 aircraft. In the next 24 months, we will certainly get to 20 aircraft,” said Abrol.

(The writer is in London at the invitation of AirAsia)