Air Asia 2 | Business Upturn

AirAsia places massive 150-jet Airbus order, eyes next-generation A220 expansion

Rashmi Pandey — Thu, 07 May 2026 11:15:26 +0000

AirAsia has signed a major fleet expansion agreement with Airbus placing a firm order for 150 A220-300 aircraft in a deal valued at approximately $6.8 billion, according to details released by the companies.

The agreement also includes options for an additional 150 A220-500 aircraft, a larger and higher-capacity variant that Airbus has not yet officially launched. The first deliveries under the confirmed order are expected to begin in the first quarter of 2028.

The A220 programme, originally developed in Canada before becoming part of Airbus, has gained significant attention in the aviation industry for its fuel efficiency, lower operating costs and suitability for regional and medium-haul routes. The A220-300 is designed to carry around 130 to 160 passengers depending on airline configuration.

Industry observers view the order as one of the most significant fleet commitments made by a low-cost Asian carrier in recent years. The deal is expected to strengthen AirAsia’s long-term expansion strategy as the airline group continues rebuilding and expanding operations across Asia and beyond.

The potential addition of the A220-500 option has also drawn attention because the aircraft has not yet been formally launched by Airbus. Aviation analysts have speculated for years about a stretched version of the A220 family aimed at serving higher-capacity routes while maintaining fuel efficiency advantages over older narrow-body aircraft.

The agreement comes as global airlines continue modernising fleets to reduce fuel consumption and operating expenses while meeting rising travel demand. Aircraft manufacturers have increasingly focused on next-generation, fuel-efficient models amid pressure from airlines to improve sustainability and profitability.

AirAsia has traditionally operated primarily Airbus narrow-body aircraft and remains one of Airbus’ largest airline customers in Asia. The latest order further deepens the long-standing partnership between the airline and the European aircraft manufacturer.

The announcement is also seen as a major boost for the A220 programme, which has steadily expanded its customer base worldwide as airlines seek flexible aircraft for short- and medium-range operations.

With deliveries beginning in 2028, the order positions AirAsia for a major fleet transformation over the coming decade while potentially giving Airbus a strong launch customer for the proposed A220-500 programme if the aircraft moves forward.

Tata Group will establish a common office in Gurugram for Air India, Air India Express, and Air Asia India

Aryan Jakhar — Sat, 10 Sep 2022 03:59:36 +0000

Three of the four airlines operated by the Tata Group will move to a single office in Gurugram by March 2023.

By the beginning of 2023, the Vatika One on One facility in Gurugram will have a common office for Air India, Air India Express, and AirAsia India. Air India has already begun to leave a number of offices that are now housed in government buildings across the nation as of September. At Airlines House, Safdarjung Complex, GSD Complex, and IGI Terminal One, the majority of the Air India workforce will transfer to an interim office location in Gurugram before moving by the beginning of March to Vatika One on One.

According to the airline, Air India’s regionalized organisational structure would likewise be abolished and replaced with a centralised one.

“This will allow consolidation of presently-dispersed teams, co-location of managers with their teams and physical adjacency of related functions,” the airline added.

Currently, Vatika One on One at Intellion Edge is about 10 km away from Vistara, the fourth airline in the Tata stable.

“It may only be a matter of time before Vistara also gets moved to Vatika One on One,” an industry expert said.

In January 2022, the Tata Group once again bought Air India and Air India Express as part of a strategic divestment programme run by the government. Tata Sons and AirAsia Investment Limited (Malaysia) have partnered to create AirAsia India, with the former owning an 83.67% interest and the latter a 16.33% stake in the airline. In April, Air India suggested buying out the whole stake held by the Tata group in AirAsia India in an effort to increase synergy among the Tata group airlines. The plan was approved by the Indian Competition Commission in June.

AirAsia in talks with Tata Group to review their relationship

Divya Joyce — Wed, 09 Dec 2020 13:09:25 +0000

Tony Fernandes, CEO of AirAsia Group at a CAPA live said, they’re in talks with Tata Group to review their relationship.

“We have fantastic partners in the form of Tata Group. Discussing with partners on whether to put money to continue in India or expand in ASEAN”. Tata Group’s airline Vistara in November had made an indication of buying the loss-making national carrier AirIndia with Singapore Airlines. Tata Group also stated that it had the potential of buying the airline individually if SIA refused to join.

“Our businesses in Japan and India have been draining cash, causing the group much financial stress. Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” the airline said in a statement on Tuesday.

“A detailed network and fleet optimization strategy has been implemented across the network, putting the right foundations in place for a sustainable and viable future. We continually review our network to ensure we fly the most popular and profitable routes,” AirAsia Bhd said, adding that the airline would focus on the Asean region, where its operations are the strongest.

Spokespersons at AirAsia India and Tata Sons declined to comment. Tata Sons, the holding company of the Tata group, has a 51% stake in AirAsia India. AirAsia Group owns the remaining 49%.

Credit Suisse had in June cited AirAsia Bhd chief executive officer Tony Fernandes as saying that the carrier could exit its partnership with the Tatas.

According to mint, AirAsia had in June approached the Tata group to sell its stake, as mandated by the terms of the joint venture under which Tata Sons has the right of first refusal.

The airline, which began operations in 2014, has never reported an annual net profit despite being very conservative with its growth plans. AirAsia’s losses widened to ₹332 crore in the June quarter mainly due to the lockdown and travel curbs to contain the pandemic, sharply increasing from the ₹15.11 crore loss it had reported in the same period last year.

Indian airlines have been among the worst-affected by the pandemic, which has led to muted demand amid travel restrictions, especially on international sectors.

According to industry lobby group International Air Transport Association (IATA), airlines in the Asia-Pacific region, including India and Malaysia, are the hardest hit by the pandemic with losses expected to be around $29 billion this year. This is more than a third of the $84.3 billion industry losses expected globally.

AirAsia to raise $230 Million for Sustainability Development

Chittesh Dalmia — Thu, 09 Jul 2020 06:18:23 +0000

AirAsia to raise $230 Million for Sustainability Development . Malaysian budget carrier AirAsia Group Bhd said it was in talks to raise more than 1 billion ringgit ($235 million) in funds, a day after its auditor cast doubt on its ability to continue as a going concern.

AirAsia said it was considering various fundraising options, including debt and equity, from Malaysian banks and other investors. It has started to lay-off employees, reduce refreshment allowances and is working on extensions with lessors, it said., with a goal of reducing expenses by 30%.

“We have been presented with proposals in various forms of capital raising. Be it debt or equity, and are in ongoing discussions with numerous parties. Also, including investment banks, lenders. As well as interested investors in seeking a favorable outcome for the group”. Furthermore, the airline said in a statement.

AirAsia, like other airlines, has been greatly affected by the coronavirus pandemic. The cash flow has been affected with revenue not sufficient to cover the fixed costs. The airline posted a Q1 loss of nearly $200 million, its biggest quarterly loss since 2004.

Equities research firm CGS-CIMB said AirAsia would need 3 billion ringgit in new funding. Since to maintain a healthy cash position. Also adding capital-raising efforts could result in shareholder dilution.

“The depth and duration of the drought in air travel volumes makes it more likely. That lessors will need to make significant adjustments to their fleet investments. If they wish to align with shifts in leased aircraft demand by airlines”. Moody’s said in a statement. “Residual values for certain leased aircraft will significantly and permanently weaken as airlines adjust capacity.”