Sources revealed that Malaysia's low-cost airline AirAsia is negotiating to convert some Airbus orders into long-range aircraft orders.
AirAsia has been gradually adjusting its orders due to a sluggish period and facing financial difficulties during the COVID-19 pandemic.
Reuters quoted two industry insiders on Thursday (July 3) to report the news. They said AirAsia is negotiating with Airbus to convert some existing narrow-body aircraft orders into a long-range A321XLR model. AirAsia is developing a path to get rid of restructuring.
Sources revealed that the two sides may reach an agreement as early as this week when Malaysian Prime Minister Anwar visits Paris. Another source said the agreement was not a surefire.
Sources said such a deal would not necessarily increase AirAsia’s total unfinished orders with Airbus, but would support the industry’s longest narrow-body jet model.
Airbus and AirAsia have not immediately responded to requests for comment.
Tony Fernandes, CEO of the Asian carrier Capital A Group, told Reuters last month that he was negotiating to purchase 50 to 70 Airbus' latest models within one to three months, but he hinted that the priority is to complete the group's financial restructuring.
Malaysia-based AirAsia, one of Asia's largest budget airlines and one of Airbus' biggest customers, has ordered over 350 aircraft.