AirAsia Orders 150 Canadian-Built Airbus Jets in Landmark Deal for Quebec Aerospace
Southeast Asian low-cost carrier AirAsia X has signed a multibillion-dollar agreement to purchase 150 Airbus A220-300 jets built in Mirabel, Que. — the largest single order ever placed for a Canadian-made commercial aircraft, officials said Wednesday.
Tony Fernandes, co-founder of the Malaysia-based airline, signed the deal at Airbus’s Mirabel factory in the presence of Prime Minister Mark Carney and Quebec Premier Christine Fréchette. Fernandes valued the order at US$19-billion at list price, though actual transaction prices are typically substantially lower.
A Conditional Double Order on the Table
Fernandes announced that AirAsia has also taken purchase options for an additional 150 jets — contingent on Airbus proceeding with a larger, as-yet-unapproved variant called the A220-500, which would seat up to 185 passengers.
“Get a move on. I do want that aircraft. If they build this aircraft, AirAsia will buy another 150,” Fernandes told Airbus executives during his remarks at the signing ceremony, drawing applause from employees in attendance.
He said he expects Airbus to make a final decision on the stretched model in November, with a potential entry into service by 2032. Other carriers, including Air France and U.S. budget airline Breeze Airways, have also expressed interest in the larger variant.
Carney’s Role in Closing the Deal
Prime Minister Carney, who knows Fernandes personally and met with him in Kuala Lumpur last October to discuss closer Canada-Asia ties, played a direct role in securing the agreement. “I think Mark Carney’s great for our brand,” Fernandes told The Globe and Mail. “He’s very popular in Asia. He’s been a great ambassador for Canada.”
Fernandes suggested Canada had historically been overshadowed by the United States in its commercial relationships with Asia, but that Carney had begun to shift that dynamic. “He’s spoken bravely and wisely,” Fernandes said. “I thought if we could support him, why not?”
Carney called the agreement “a turning point for the Quebec aerospace industry,” saying it would support thousands of well-paying jobs and demonstrate international demand for Canadian-made aircraft. He described the A220-500 as “an exciting opportunity” and said Ottawa is working with the Quebec government and Airbus to advance the project, though he offered no details on timing or potential public financing.
What the Deal Means for the A220 Program
The A220 program, which Airbus took over from Bombardier Inc. in 2018, has yet to turn a profit eight years after the transition. Airbus has now accumulated roughly 1,100 orders for the jet, which is assembled at facilities in Mirabel and Mobile, Ala.
The entire AirAsia order will be fulfilled at the Mirabel plant, Airbus’s dedicated facility for non-U.S. customers. First deliveries are expected in the first quarter of 2028.
For AirAsia, the order is partly a matter of practicality. The airline, which operates an all-Airbus fleet of roughly 250 aircraft, is pushing to expand after restructuring in the wake of the COVID-19 pandemic. Fernandes said the A220’s earlier availability compared to other Airbus models was a key factor. “You try and buy a new A321, you won’t get one until 2032,” he said. “I’m getting this in 2028.”
Ongoing Challenges for Airbus Canada
Despite the momentum, significant hurdles remain for the A220 program. Airbus has faced persistent supplier and labour disruptions, with bottlenecks in airframe components and cabin materials slowing deliveries to customers.
The aircraft’s Pratt & Whitney geared turbofan engines have presented a separate and serious problem. In 2023, Pratt & Whitney disclosed a widespread defect caused by contaminated powder metal used in engine production — an issue that affected a large portion of the global A220 fleet.
The Quebec government remains a partner in the Mirabel venture and, along with Airbus, has a direct financial stake in achieving a manufacturing rate that makes the program economically viable.
