AirAsia Eyes 100-Plane Expansion Amid Growth Plans

Malaysian budget airline AirAsia is in talks with global aircraft manufacturers to purchase at least 100 new planes. The fleet expansion plan aims to enhance its operational capacity and support increased flight routes and destinations for the coming year.

CEO Tony Fernandes revealed ongoing discussions with Airbus, Embraer, and China’s COMAC. AirAsia’s team is set to visit Brazil to assess Embraer models and Canada to evaluate Airbus A220s. The airline has already tested the Airbus A220 during a demonstration flight and explored Embraer’s E2 aircraft interior. COMAC also showcased its C919 widebody aircraft in Malaysia earlier this year.

The expansion will move AirAsia beyond its current reliance on Airbus A321 models, with Fernandes indicating a minimum requirement of 100 aircraft pending board approval.

In addition to the fleet expansion, AirAsia’s merger with AirAsia X is progressing, creating a unified corporate structure for both carriers. The RM6.8 billion merger aims to position the airline as a leading transit hub in Southeast Asia, with a projected passenger target of 90 million by 2025, up from its current 70 million.

Transit passengers already account for 21% of AirAsia’s total traffic, reinforcing its status as a regional hub akin to Dubai and London.

Capital A Berhad, AirAsia’s parent company, has submitted a Proposed Regularisation Plan to exit its PN17 status. The plan includes a capital reduction of up to RM6 billion to improve the company’s financial stability, reflecting its recovery from pandemic-related losses.

The plan requires approvals from Bursa Malaysia, shareholders, and the High Court of Malaya. Once complete, the company expects to achieve the same success as AirAsia X, which exited PN17 last year.

These strategic initiatives demonstrate AirAsia’s commitment to growth, resilience, and market leadership in Southeast Asia’s aviation sector.

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