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Malaysian Prime Minister Anwar Ibrahim (center) witnessed the signing of the agreement between Capital A CEO Tony Fernandes (center left) and Christian Scherer (center right), CEO of Airbus Commercial Aircraft, in Paris on July 4, alongside several Malaysian cabinet ministers.
SINGAPORE—AirAsia has committed to acquiring 50 additional Airbus A321XLR aircraft as part of a renewed strategy to expand into long-haul markets, including Europe and North America.
The agreement includes conversion rights for 20 aircraft to the XLR variant.
Speaking at a press briefing, Capital A CEO Tony Fernandes said the deal aligns with the group’s long-term vision of operating a fleet of 500 narrowbody aircraft. While AirAsia’s existing order for approximately 14 A330neos remains unchanged, Fernandes revealed the company is considering exiting the widebody segment entirely and is in discussions with Airbus regarding the future of the A330neo program.
“We’ve always wanted to be a narrowbody operator, which wasn’t feasible with the A320ceo. The XLR gives us far greater flexibility—lower risk when launching new routes and access to markets that were previously out of reach,” Fernandes said.
Fernandes also hinted at another aircraft order expected next month, likely related to the group’s regional aircraft campaign—a competition involving the A220, Comac C919 and Embraer E2 family.
AirAsia’s long-haul network expansion will rely on a one-stop strategy via the Middle East for Europe-bound routes, and a two-stop model to North America, either through Europe or Japan.
Fernandes said the group is exploring fifth and seventh freedom rights from Middle Eastern countries, although he noted a preference not to obtain a full air operator certificate (AOC) in the region.
“My preference is not to start an AOC in the Middle East in the first place, just to base aircraft there or pure stopovers. We'll have to see how successful it is,” he said.
AirAsia expects its North America fares to be 30%–50% lower than those offered by full-service carriers on similar routes.
The first A321XLR is expected to enter service between 2027 and 2028, with long-haul operations initially handled by the A330 fleet. The group is also scheduled to take delivery of four A321LRs in 2026.
According to Aviation Week’s Fleet Discovery database, the AirAsia Group currently has 385 A320neo-family aircraft and 14 A330neos on order.
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