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Daily Express
06-07-2025
- Business
- Daily Express
AirAsia inks RM51 billion Airbus deal to add 70 long-range jets
Published on: Sunday, July 06, 2025 Published on: Sun, Jul 06, 2025 By: Bernama Text Size: Capital A Bhd Chief Executive Officer Tan Sri Tony Fernandes Kuala Lumpur: AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd Chief Executive Officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris Saturday for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. Advertisement 'This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. 'This will enable us to fly to Europe, and we're hoping to launch our first European flight this year,' he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft Chief Executive Officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. 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. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. 'This is the first time in our history that we've been rated by international credit rating agencies,' he noted. 'As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. 'Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy,' he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. 'Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),' he said. He added that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said 'the AirAsia Group itself will not be listed in Malaysia'. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
05-07-2025
- Business
- The Star
AirAsia inks US$12.25bil Airbus deal to add 70 long-range jets
KUALA LUMPUR: AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. "This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. "This will enable us to fly to Europe, and we're hoping to launch our first European flight this year,' he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft chief executive officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. 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. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. "This is the first time in our history that we've been rated by international credit rating agencies,' he noted. "As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. "Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy,' he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. "Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),' he said. He added that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said "the AirAsia Group itself will be listed in Malaysia'. - Bernama
Malaysiakini
05-07-2025
- Business
- Malaysiakini
AirAsia inks US$12.25b Airbus deal to add 70 long-range jets
AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus A321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd CEO Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MOU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which is targeted to serve Central Asia, the Middle East, and Europe, among others. 'This will probably make us one of the...
New Straits Times
05-07-2025
- Business
- New Straits Times
AirAsia buys 50 Airbus A321XLR for RM51.7bil in bid to be global low-cost airline
KUALA LUMPUR: Capital A Bhd, the parent company of AirAsia Bhd, has announced a landmark order for 50 Airbus A321XLR (extra long-range) aircraft in a deal valued at RM51.7 billion (US$12.25 billion). The acquisition comes with the conversion rights for 20 more aircraft as the airline embarks on a bold step towards becoming a global low-cost network carrier. Capital A chief executive officer (CEO) Tan Sri Tony Fernandes said the order marks a significant shift for AirAsia, which will be one of the largest operators of the extra long-range A321XLR once deliveries begin in 2028 through 2032. "This order enables us to have a narrowbody fleet that can cover the world. It's really transformative. "We believe we can build the world's first low-cost narrowbody network carrier," he said in a media briefing yesterday. Fernandes signed a Memorandum of Understanding (MoU) for the aircraft order with Airbus Commercial Aircraft CEO, Christian Scherer yesterday in Paris. The signing ceremony was witnessed by Prime Minister Datuk Seri Anwar Ibrahim. The aircraft order was a year in the making, Fernandes said, adding that it is a crucial step in AirAsia's long-term strategy to expand globally without the high-risk cost structure of widebody aircraft. He said AirAsia would evolve into a low-cost network airline akin to Qatar Airways or Emirates, except that the budget carrier will be flying more narrowbody aircraft. "Seven per cent of our passengers already connect through Kuala Lumpur or Bangkok onto another flight," Fernandes said, adding that the airline can be a network carrier. He also said that the order is a clear signal that AirAsia's post-pandemic recovery and restructuring efforts are on track. "This shows the confidence we have going forward. As I said at the Paris Airshow that we wanted to make sure we had a clear path to restructuring, a raising of capital and getting all our aircraft back into operation." "We now feel that the worst is over, and so we've got to start planning for growth; before we miss this opportunity as slots get taken up," Fernandes added. The A321XLRs, with a flying range of up to nine hours, is set to reshape AirAsia's global footprint by enabling long-haul, point-to-point routes using narrowbody jets. The aircraft will allow AirAsia to adopt a similar model to Middle Eastern carriers, using a single-stop hub approach to connect Southeast Asia to Europe and the Americas. Fernandes said AirAsia plans to build a Middle East hub to connect Asia to Europe and further aims to establish a stopover in Europe for onward connections to America. For West Coast US routes, the budget carrier is eyeing destinations such as Japan as a connecting hub. "We're hoping to launch our first European flight this year," Fernandes said, adding that the initial flights will use existing A330s until the new A321XLR arrives. "I can announce Istanbul is around the corner, as well as one destination in Western Europe and three or four Eastern European destinations," he added. The A321XLR is expected to significantly lower AirAsia's operating costs and unlock markets previously inaccessible due to range and aircraft size limitations. Compared to the 380-seat A330, the 240-seat A321XLR offers more flexible deployment and stronger yield management, Fernandes said. He projected AirAsia's fares to Europe and the U.S. to be 30 to 50 per cent cheaper than the current market averages. "Our goal is to not take anyone's market share. It's to allow people to fly to places they never dreamt of flying," Fernandes said, adding that AirAsia's network will also open opportunities for cargo. The A321XLR aircraft will also enable more frequent flights, faster turnarounds, and access to secondary cities in Asean. Fernandes said cities like Penang, Johor Bahru, and Bali could be potential launch points for long-range XLR flights. "We can start using XLR from Bali, Penang and Johor Bahru. Johor's Senai Airport will be a big play for us," he added.
New Straits Times
04-07-2025
- Business
- New Straits Times
AirAsia inks US$12.25b Airbus deal to add long range jets
KUALA LUMPUR: AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. "This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. "This will enable us to fly to Europe, and we're hoping to launch our first European flight this year," he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft chief executive officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. 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. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. "This is the first time in our history that we've been rated by international credit rating agencies. "As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. "Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy," he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. "Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17)," he said. He said that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said "the AirAsia Group itself will not be listed in Malaysia". – Bernama
