PARIS— AirAsia (AK) has signed a memorandum of understanding with Airbus for up to 70 A321XLR aircraft during Malaysian Prime Minister Anwar Ibrahim’s diplomatic visit to France. The deal, valued at $12.3 billion, was sealed in Paris (CDG) and marks a major expansion milestone for the low-cost carrier.
The agreement includes 50 confirmed aircraft and options for 20 more, with deliveries expected to start in 2028. AirAsia plans to use the fuel-efficient, long-range narrowbody jets to support route expansion across Asia and Europe.
AirAsia Orders 70 A321XLR
The A321XLR jets, which offer the longest range of any narrowbody aircraft, will allow AirAsia to reach high-potential markets such as China, India, and parts of Europe without relying on widebody planes.
Tony Fernandes, CEO of parent company Capital A Bhd, emphasized that these aircraft reduce risk when launching new routes, enabling sustainable growth.
The airline aims to develop a new Gulf hub and expand operations toward Europe. Fernandes also mentioned ongoing discussions with Airbus regarding a possible exit from its existing A330 widebody order.
The shift toward an all-narrowbody fleet aligns with AirAsia’s 15-year strategy to streamline operations and optimize fuel efficiency.
The AirAsia-Airbus deal coincided with Prime Minister Anwar Ibrahim’s official visit to France (invited by President Emmanuel Macron), where commercial and defense aviation agreements were front and center.
Beyond the AirAsia purchase, Malaysia also signed defense procurement deals for two maritime patrol aircraft, 28 AW149 helicopters from Leonardo SpA, and naval vessels from Italy.
The aviation agreements reflect growing defense and trade collaboration between Malaysia and the EU. France remains a top-5 trading partner for Malaysia within the bloc, and bilateral trade reached 15.95 billion ringgit ($3.63 billion) in 2024.
Executive Remarks
Tony Fernandes, CEO of Capital A and Advisor & Steward of AirAsia Group, stated:
We pioneered low-cost travel in Asia – now, we are taking it to the next level. AirAsia is on a transformative journey to become the world’s first low-cost network carrier. This is about exponential growth, connecting geographies beyond Asean, and making flying even more democratic. We gave people in Asean the opportunity to explore Asia – now we want the world to see Asean, and Asean to see the world. The A321XLR and A321LR are the game-changers enabling this vision, and we are proud to lead the charge in making our world smaller. We can’t wait to paint the skies even wider in red.”
Tony Fernandes, CEO of Capital A and Advisor & Steward of AirAsia Group
While Christian Scherer, CEO Commercial Aircraft at Airbus, said:
We are pleased to confirm this agreement, as AirAsia Group begins its next development chapter. Having resumed its growth trajectory, which we salute and support, the airline is creating solid fleet efficiencies, allowing global network expansion. The A321XLR unlocks new opportunities for AirAsia to launch non-stop flights linking primary and secondary cities all around the globe
Christian Scherer, CEO Commercial Aircraft at Airbus
Global Trend of Aircraft Orders Tied to Diplomacy
AirAsia’s Airbus order continues a trend where major commercial aircraft purchases are aligned with diplomatic visits.
Similar announcements include Boeing’s $96 billion deal with Qatar Airways (QR) during former U.S. President Donald Trump’s Middle East tour and IAG’s (British Airways parent) Dreamliner order during U.S.-UK trade negotiations.
These deals showcase the increasing role of aviation in global diplomacy, where economic partnerships are reinforced through high-value aircraft orders.
Long-Term Vision and Financial Positioning
Fernandes revealed that AirAsia could order up to 150 more aircraft in the coming years to complete its long-term strategy.
The airline is also exploring a secondary stock listing in Hong Kong to strengthen its capital base and broaden investor access as it scales operations.
With rising demand for intra-Asia and mid-haul travel, the A321XLR offers AirAsia the flexibility to add new routes that would be unviable for larger aircraft. This aircraft order signals the company’s renewed confidence in post-pandemic recovery and regional travel growth.
Malaysia PM Anwar Ibrahim’s France Visit
Prime Minister Dato’ Seri Anwar Ibrahim has commenced his official visit to France at the invitation of President Emmanuel Macron, marking his first bilateral visit to the country since assuming office.
The two-day visit, taking place in Paris (CDG) on July 3–4, 2025, includes high-level discussions aimed at strengthening relations between Malaysia and France, covering trade, defence, education, and regional cooperation. The Malaysian delegation arrived via Malaysia Airlines (MH).
Prime Minister Anwar’s agenda in Paris is centered on enhancing strategic partnerships across multiple sectors. On July 4, he was welcomed with an Official Ceremony at Hôtel des Invalides, followed by a private meeting and delegation-level talks with President Macron at the Élysée Palace.
The bilateral discussions aim to deepen collaboration in trade and investment, defence, education, tourism, and cultural exchange. Both leaders also exchanged views on global and regional concerns, including the ASEAN-France Development Partnership, ASEAN-EU Dialogue, and developments in the Middle East.
France remains a significant EU partner for Malaysia, being among its top five trading partners in the bloc. In 2024, total bilateral trade stood at RM15.95 billion (USD3.63 billion). From January to May 2025, trade volume reached RM6.26 billion (USD1.49 billion), reflecting a steady economic relationship.
Economic Engagement and Diaspora Outreach
A major component of the Prime Minister’s visit includes a Roundtable with French industry leaders, aimed at positioning Malaysia as a preferred destination for high-tech and strategic investments. The session will emphasize Malaysia’s readiness for foreign direct investments (FDI) in sectors such as digital technology, renewable energy, and advanced manufacturing.
Additionally, Anwar is scheduled to deliver a public lecture at Sorbonne University, strengthening academic diplomacy and intellectual engagement. He will also meet the Rector of the Grand Mosque of Paris, underscoring Malaysia’s commitment to interfaith dialogue and cultural ties.
The visit includes interaction with the Malaysian diaspora in France, recognizing their contributions and fostering deeper people-to-people connections.
Following the France visit, Prime Minister Anwar will proceed to Brazil to attend the BRICS Leaders Summit from July 5–7, 2025. The summit offers another global platform for Malaysia to contribute to international discourse, especially in areas of global economic governance, South-South cooperation, and sustainable development.
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