AirAsia X orders 25 more Airbus planes worth $6 bn

This makes the order the world's largest single airline firm order in a single purchase agreement valued at $6 bn

AirAsia X on Thursday said it had placed an order for 25 more A330-300s with Airbus. This is the world’s largest order from an airline in a single purchase agreement valued at $6 billion for the this aircraft type, according to the company.

This increases AirAsia X’s Airbus order to 51, apart from six such planes leased from the International Lease Finance Corporation (ILFC), bringing AirAsia X’s total confirmed fleet deliveries to 57 by 2019.

AirAsia X will start taking delivery of its the 25 aircraft in 2015 as it begins to expand its network across Asia-Pacific. The new order includes the latest extended range versions of the aircraft, enabling the airline to offer non-stop flights to destinations in Europe or a one-stop flight to the US.

Tony Fernandes, co-founder and director, said: “This order stamps our firm intent to dominate the long-haul, low-cost carrier space and marks the next phase in our development to be the undisputed global market leader.” He added this would allow the airline to remain the youngest wide-body fleet in the region (at under five years) till 2019, with corresponding competitive fuel efficiency, reliability and cabin comfort benefits.

 

The Airline foresee strong market potential based on a low penetration rate of under 10% for low cost carriers in the beyond 4 hour market across Asia Pacific. "Hence, we estimate a market size of about 100 low cost carrier wide-bodies in the region if it grew to 35% over the next five years,” he said.

 

The aircraft orders would further cater to our expansion plans in Malaysia, and the proposed new Thai AirAsia X hub as well as other long-haul ventures planned across Asia. The developments will complement the AirAsia Group's long-term vision of developing its presence in key markets in Asia and strengthen the connectivity between long-haul and short-haul low-cost network, he added.