An order for 150 Airbus A220-300 aircraft valued at around $19 billion (£14bn) by budget carrier Air Asia could become one the most lucrative commercial deals in the modern history of the north’s aerospace sector.
Airbus said it is the largest single firm order ever placed for the narrow-body aircraft and its Belfast-manufactured wings.
It comes just five months after Airbus completed the acquisition of the A220 wing and A220 mid-fuselage programmes in the north from Spirit Aerosystems.
The Air Asia order has been described as Canada’s biggest ever commercial aircraft deal.
The components, including the Belfast-made wings and fuselage are assembled in both Canada and the United States at production lines in Mirabel, Quebec and Mobile, Alabama.
A digitally rendered mock-up of an Airbus A220-300 aircraft in the Air Asia livery.
Launched in 1996, Kuala Lumpur-based Air Asia has built up Malaysia’s largest fleet of aircraft.
Its founder and CEO Tony Fernandes has described the A220 order as “a $19bn deal”, adding that it could grow to $38bn (£28bn).
The order is for 150 of the larger version of the A220, which seats up to 160 passengers.
Mr Fernandes told the Financial Times that if Airbus launched a larger version, he would order another 150 jets from the Toulouse-based airframer.
Earlier this year it was reported that Airbus would soon start offering the A220-500 to airlines, which would be capable of seating up to 185 passengers.
It’s understood $19bn relates to the list price of 150 A220-300s.
That would indicate the A220-300 is currently listed for around $126.6m (£93m).
But industry reporting regularly points to significant discounts secured by airlines when placing major orders.
Even with large discount, conservative estimates put the value of the Air Asia order in the region of $500m for the wings alone.
That could rise to around $1bn over the duration of the contract if fuselage and other work is factored in.
The former Spirit Aerosystems operation in Belfast, which has been carved up between Airbus and Boeing. PICTURE: COLM LENAGHAN
The value for Belfast could potentially double if Air Asia follows through with an order for 150 A220-500 aircraft as suggested.
Last month, Airbus said it was aiming to assemble 12 A220-300 jets per month in 2026, with the target of increasing that to 13 per month in 2028.
The latest available financial reporting for the Belfast operation state the A220 programmes remain material to the business, which generated $683m in commercial revenue in 2024, prior to its break-up.
The acquisition of the A220 programmes in Northern Ireland from Spirit Aerosystems in December formally completed the carve up of the former Short Brothers operation between Airbus and Boeing.
Airbus now employ around 1,500 in its manufacturing lines in Belfast, with more than 2,000 moving to Boeing.
Industry body ADS has said the aerospace, defence, security and space sectors now generate in excess of £2bn annually in the north.