Tag: Lars Wagner

Airbus A220 aircraft order deal will cost US$19 billion, says Fernandes

KUALA LUMPUR: AirAsia Bhd has announced that its order for 150 Airbus A220 aircraft will cost around US$19 billion, according to its advisor Tan Sri Tony Fernandes. Fernandes, who is also the CEO of Capital A, expects the first delivery of the aircraft to arrive no later than the first quarter of 2028. He said the Airbus A220 would open up new market potential and routes, bringing them closer to building the world's first low-cost airline network. "So, with this 160-seat aircraft, it allows us to increase our profit margin by around two to three percentage points, in addition to building a much wider network. "This aircraft can also fly for up to seven hours and in Asia, it has a very high value for us," he told reporters after the signing ceremony of the Airbus A220 order agreement which was broadcast live from Mirabel, Quebec, Canada. Earlier in his speech, Fernandes also expressed interest in possibly purchasing another 150 aircraft if the aircraft manufacturer builds a longer version, known as the Airbus A220-500, which can accommodate around 185 seats. "This is a US$19 billion deal, which could go up to US$38 billion if we could have the longer version," he said. When asked why he needed a longer version of the A220 programme, Fernandes said the existing A320 aircraft were now nearing the end of their service life and the 180-seat aircraft would be a perfect replacement. "People may wonder why we are buying so many planes during this latest crisis, but the crisis is an opportunity to make bold decisions. "We have built AirAsia by making bold decisions at the right time, not the easiest. This order reflects our long-term discipline and the scale of our ambition," he said of the multi-billion dollar deal. "Our partnership with Airbus has spanned more than two decades and has been the backbone of all our achievements. Today marks another milestone in that journey and many more to come in the future," he said. Earlier, Lars Wagner, who is also the Chief Executive Officer of Airbus Commercial Aircraft Business, confirmed the historic agreement, which saw the A220 model surpass 1,100 orders. Also present at the event was Canadian Prime Minister Mark Carney. -- BERNAMA

KUALA LUMPUR: AirAsia Bhd has announced that its order for 150 Airbus A220 aircraft will cost around US$19 billion, according to its advisor Tan Sri Tony Fernandes. Fernandes, who is also the CEO of Capital A, expects the first delivery of the aircraft to arrive no later than the first quarter of 2028. He said […]