Air Asia is back and looking to add A220s

[moa999]

In the last week, AAX and Capital A have implemented a series of complex transactions to get them out of PN17 status (a restricted Malaysian bursa status) and are now looking at a big order of A220s.

Airbus nears deal to sell around 100 A220 jets to AirAsia, sources say

PARIS, Jan 23 : Airbus is closing in on a deal to sell around 100 A220 jets to AirAsia, marking the budget airline's first foray into regional narrowbody aircraft, industry sources said.If confirmed, a deal including options for about 50 more aircraft on top of the main order could be announced...

www.channelnewsasia.com

Air Asia Group still has some 300+ 320s on order, but has dropped a former 330 order and will reportedly retire the current 330s by 2031.

Essentially what was/ is Air Asia X (5238.KL) is now the parent company owning 100% of AAX and AA Malaysia, along with the mostly 49% stakes in the regional AAs and AAXs.
This was done via a big capital raising of RMB1bn (US$143m) and a purchase of Capital As aviation assets for AAX scrip, and an immediate distribution of a chunk of that to Capital A.

 

[markis10]

Lots of talk little reality, A220s are constrained with more on order than delivered

 

[Saab34]

AirAsia talk big on fleet but never actually deliver. They had 100 A339s on order, that never eventuated. Continued to push back other deliveries also.

I agree that the A330s have been a financial drain on the carrier and should go, XLR should plug that gap nicely whilst ceding some longer missions. The Thai and Indo offshoots have barely ever been profitable.

Where exactly do they intend to send 360 odd A321s? Vietnam is covered with existing operators also having huge aircraft on order, they gave up in Japan due to high costs, they are being squeezed by Lion and Vietjet. Singapore won’t give them a local licence, Hong Kong has no slots.

 

[moa999]

They are also still talking up Bahrain - competing Gulf Air and other ME LCCs like Air Dubai.

I agree the total order book sounds like Geoff Dixon and his 100+ 787s., but much as Scoot now has E2 190s I can see 220s working for Air Asia.

You wonder how much the manufacturers discount order books from airlines like this.

 

[Saab34]

You wonder how much the manufacturers discount order books from airlines like this.

Engine costs have grown significantly since 2019 though. I think it’s going to be tough in the LCC space moving forward for those operating newer fleets in lower yield markets like intra Asia, keep an eye on some who are holding onto mid life aircraft now.

Turkish was out recently talking about fuel savings is one thing from the new engines, but engine and engineering costs have simply blown out completely wiping out any efficiencies.