AirAsia orders 150 Airbus A220-300 jets

Q: Will Airbus launch a larger A220 for another huge order, even if it competes with its own bestselling A320neo?

Airbus looks likely to launch a larger A220, but not immediately and not solely because of AirAsia’s order. The strongest signal is commercial: Tony Fernandes has said AirAsia would add another 150 aircraft if Airbus builds a stretched A220-500, potentially taking the deal to 300 jets. Airbus is also reportedly sounding out other airlines, and industry talk points to a decision later this year or soon after. The business case is clear. A stretched A220 would move from today’s 130-160 seat space toward roughly 180-190 seats, giving Airbus a more efficient aircraft for thinner medium-haul routes where the A320neo can be too much capacity. That would help airlines open new city pairs, improve load factors and lower trip costs. It would also strengthen Airbus against Boeing’s 737 MAX 8 at the lower end of that market. But Airbus is not there yet. Guillaume Faury has signaled that the A220-500 is more a question of timing than principle, while stressing other priorities. The current A220 program still faces hurdles: profitability remains under pressure, production must ramp up reliably, and Pratt & Whitney engine durability problems have grounded part of the global fleet and hurt airline confidence. So the likely answer is yes, Airbus will eventually launch a larger A220 even if it overlaps with the A320neo. Airbus appears to believe some internal competition is acceptable if the A220-500 expands its reach, wins major orders and fills a gap between the A220-300 and A320neo.

3 articles · Updated · abcnews.com · May 6

The roughly $19bn deal, announced at Airbus's Mirabel, Quebec factory with Canadian Prime Minister Mark Carney present, is the largest single A220 order.
AirAsia said the fuel-efficient, lower-emission aircraft will help it manage high fuel prices, open smaller Asia-Pacific markets and free larger jets for longer routes.
Deliveries begin in 2028, with options lifting the order to 300 aircraft; the purchase pushes Airbus's total firm A220 orders beyond 1,000.