AirAsia seals $12 billion Airbus order on Malaysian PM visit to France

AirAsia Bhd reached a tentative agreement to purchase as many as 70 extended-range Airbus SE jets as Malaysian Prime Minister Anwar Ibrahim wrapped up his European tour with a deal that could reach $12.3 billion in value. 

The memorandum of understanding covers 50 A321XLR jets with options for 20 more, according to a statement. The jets have the longest reach of any narrowbody aircraft, and are expected to begin arriving by 2028, Tony Fernandes, chief executive officer of AirAsia parent Capital A Bhd, told reporters. 

“A narrowbody obviously gives us a lot less risk in terms of starting new routes,” he said on a video call. “This order allows us to have a narrowbody fleet that can cover the world.”

Aircraft diplomacy took center stage on the final leg of Anwar’s trip with visits to France and Italy. Malaysia plans to purchase two maritime patrol aircraft for the Royal Malaysian Navy, 28 Leonardo SpA AW149 helicopters, and naval vessels from Italy to bolster its security, Bernama reported.

The buying spree, particularly for commercial jets, come as both Airbus and its American rival Boeing Co. benefit from trade visits and bilateral tariff negotiations. 

Boeing’s bumper $96 billion deal for 210 aircraft for Qatar Airways was announced during US President Donald Trump’s Middle East tour in May, and an order for order for 32 787 Dreamliners by British Airways parent IAG SA was the centerpiece of a new US-UK trade deal.

AirAsia plans to use the XLRs to open up routes in China, India and other parts of Asia-Pacific that would be uneconomical for larger planes requiring more fuel, Fernandes said. 

AirAsia plans to open a Gulf hub this year and extend its flight network to some European destinations. Capital A is also eying a secondary listing in Hong Kong. 

The airline is looking to order up to 150 more jets to complete its 15-year strategy, Fernandes said. He said the company is in talks with Airbus over the fate of an earlier order for A330 widebodies, an aircraft category he’d prefer to exit. 

Anwar is in France for his inaugural visit as prime minister at the invitation of President Emmanuel Macron. France is one of Malaysia’s top five trading partners within the European Union and a key source of foreign direct investment in high-technology and strategic sectors, according to the Foreign Affairs Ministry. 

In 2024, total trade between Malaysia and France amounted to 15.95 billion ringgit ($3.63 billion). From January to May 2025, trade was recorded at 6.26 billion ringgit.