Quebec Premier Christine Frechette, left, Prime Minister Mark Carney and CEO of Airbus Commercial Aircraft Lars Wagner, far right, applaud AirAsia CEO Tony Fernandes, centre, during an event at the Airbus A220 delivery centre in Mirabel, Que., on Wednesday.Graham Hughes/The Canadian Press
AirAsia X Bhd has announced a multibillion-dollar deal for 150 new Canadian-made Airbus A220 jets and said it would double the order if Airbus EADSY makes an even larger version of the aircraft, adding pressure on the European-based plane maker to quickly approve plans for a stretched model.
Tony Fernandes, co-founder of the Southeast Asian low-cost carrier, cemented the order with a signature at Airbus’s factory in Mirabel, Que., Wednesday in the presence of several dignitaries, including Prime Minister Mark Carney and Quebec Premier Christine Fréchette. It is the largest order to date for the A220 and the largest ever for a Canadian-made plane, according to officials.
Airbus did not give a value for the order, which is for the A220-300 model, seating up to 160 passengers. Mr. Fernandes called it a US$19-billion deal, which he told The Globe and Mail reflects the list price for the aircraft. The actual price paid is substantially less.
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Mr. Fernandes told The Globe AirAsia has also taken purchase options for another 150 of the larger A220 model, called the A220-500, though the jet hasn’t been approved and doesn’t exist yet. He said he expects Airbus to make a final decision whether to move ahead with the plane in November, with a potential entry into service in 2032.
“We really hope that you will build the larger version,” Mr. Fernandes said in comments directed at Airbus executives in his speech at the event. “Get a move on. I do want that aircraft. If they build this aircraft, AirAsia will buy another 150,” he said, triggering applause from the Airbus employees in attendance.
The backing of a carrier like AirAsia with such a major order lends further weight and momentum to the A220 program, which is still not profitable eight years after Airbus took over from Bombardier Inc. BBD-B-T in 2018. The European manufacturer has now booked about 1,100 orders for the jet, which is built at factories in Mirabel and Mobile, Ala.
It also shows that top lawmakers can move the needle in drumming up new business for their domestic champions, something Canada’s aerospace manufacturers have pushed federal politicians to do. Mr. Carney knows Mr. Fernandes and met with him most recently last October in Kuala Lumpur, where they discussed forging closer ties between Canada and Asia.
Mr. Carney helped seal the deal, Mr. Fernandes told The Globe.
“I think Mark Carney’s great for our brand,” he said. “He’s very popular in Asia. He’s been a great ambassador for Canada. But in this instance, I wanted to show support.”
Mr. Fernandes said that more business used to be done between Canada and Asia, but that “Canada’s always played second fiddle in many ways, to the United States, right?“
But he feels that Mr. Carney has changed that dynamic. “So, I liked him. I think he’s spoken bravely and wisely. And so, I thought if we could support him, why not?”
The agreement with AirAsia marks “a turning point for the Quebec aerospace industry,” Mr. Carney said in a speech Wednesday, adding it will support thousands of stimulating and well-paying jobs and boost the export of an aircraft clearly in demand internationally.
Ms. Frechette greets an Airbus employee during a tour of their Mirabel facility on Wednesday.Graham Hughes/The Canadian Press
Some airlines, such as Air France and U.S. budget carrier Breeze Airways, are also keen on Airbus offering the A220-500, which would seat up to 185 passengers. Guillaume Chevasson, who heads Airbus operations in Canada, has said the company is analyzing the possibility but hasn’t given a timeline on a decision to move ahead.
The entire AirAsia order will be fulfilled in Mirabel, Airbus’s dedicated site to make jets for non-U.S. customers. The first deliveries should come in the first quarter of 2028, Mr. Fernandes said.
Mr. Carney called the stretch version of the A220 “an exciting opportunity” and said Ottawa is working with the Quebec government and Airbus to make the project a reality. He did not provide any other details about timing or potential financial backing.
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AirAsia is a major multinational low-cost airline based in Malaysia that operates an all-Airbus fleet of about 250 planes. Launched by Mr. Fernandes, it was hit hard during the height of the COVID-19 pandemic and forced to restructure but is now pushing to expand.
Among its plans, the carrier is aiming to launch a Middle East hub in Bahrain that would serve as a springboard for flights into Europe. Mr. Fernandes said the A220s he is buying will allow the airline to open up new routes and improve profit margins by keeping the planes fuller than its larger existing Airbus aircraft.
AirAsia also chose the A220 because of its availability, he said. “You try and buy a new A321, you won’t get one until 2032,” he said in an interview. “I’m getting this in 2028.”
Employees work on an Airbus A220-300 at the Airbus facility in Mirabel in 2020.Christinne Muschi/Reuters
For Airbus, it is validation of its decision to take over the A220 program from Bombardier. The plane maker has made progress on sales and production flow since Bombardier relinquished ownership of the aircraft, previously called the CSeries.
But significant obstacles remain, namely achieving a manufacturing cadence that delivers a return for Airbus and the Quebec government – its partner in the venture.
Airbus has struggled with supplier and labour issues, blaming bottlenecks in airframe components and cabin materials for the delays in shipping aircraft out to clients. The A220’s geared turbofan engines have been another major problem. In 2023, Pratt & Whitney, the manufacturer, disclosed a major and widespread defect in the motors because of what it said was contaminated powder metal used in production.