AirAsia Seals $12.25 Billion Airbus A321XLR Deal

AirAsia, under the ownership of Capital A Group, has signed a deal to purchase 50 Airbus A321XLR long-range jets with conversion rights for an additional 20 aircraft, potentially increasing the total to 70 planes. CEO Tony Fernandes highlighted that deliveries are expected to begin as early as 2027 and continue through 2032, aligning with AirAsia's plans for growth and restructuring after exiting its financially distressed status. The A321XLR, known for its extended range and fuel efficiency, will enhance AirAsia's ability to serve new and longer routes across North Asia, Australia, and Central Asia, complementing its existing fleet of over 240 Airbus aircraft. Discussions are also underway concerning a possible order of 15 Airbus A330s and a larger order of up to 150 aircraft, including potential collaboration with China's Comac. Financing for the new orders is expected to involve bond markets, capital markets, and export credit agency-backed financing, with bond issuance anticipated by October. The timing of the deal coincides with Malaysian Prime Minister Anwar Ibrahim's state visit to France, emphasizing the strategic economic and diplomatic importance of this agreement for Malaysia.