AirAsia is reportedly on the verge of finalizing a deal to purchase 100 Airbus A220 aircraft, as per insider sources mentioned by Reuters. The big announcement could potentially take place at the prestigious Paris Air Show happening at Le Bourget from June 16-22, 2025. If this deal goes through, it will mark a significant milestone for AirAsia on multiple fronts, beyond just the sheer scale of the order.

Notably, this purchase would see AirAsia adding a new aircraft type to its existing fleet, as the A220 is considerably smaller with a capacity of 100 to 150 seats depending on the variant. Unlike AirAsia's current all-Airbus fleet consisting of A320s and A321s, along with A330s for its AirAsiaX long-haul operations, the addition of the A220 presents an intriguing shift towards smaller aircraft models for the airline.

This strategic move also diverges from the industry trend where many budget carriers are opting for larger planes. Speculation suggests that AirAsia may utilize the A220s to enhance its regional routes within Asia, particularly targeting smaller destinations. CEO of the parent company Capital A, Tony Fernandes, discussed the vision of expanding the airline's network in Asia to connect various long-haul hubs during an event held at AirAsia’s HQ in Kuala Lumpur in January 2024.

Moreover, this substantial order signifies a vote of confidence in AirAsia’s future, following a challenging period of financial instability exacerbated by the COVID-19 pandemic. During this turbulent phase, Capital A, under the regulatory scrutiny of Malaysian financial authorities, underwent a comprehensive restructuring effort for its airline subsidiaries. As part of the recovery strategy, Capital A divested its aviation businesses to merge with AirAsia X, forming a consolidated and resilient airline group. This potential acquisition of Airbus A220 aircraft represents a pivotal moment for AirAsia as it charts a renewed path forward post-crisis.