AirAsia to Make Flying Cheaper Between Southeast Asia and Europe, US

Malaysian Prime Minister Anwar Ibrahim posted this picture on July 4, 2025, with the caption: "I have witnessed the signing of the purchase agreement between AirAsia and Airbus which will strengthen the airline's operational capability for short and medium -haul routes."

BANGKOK — AirAsia will in the foreseeable future be flying from Southeast Asia to Europe and the US as the world’s first low-cost airline announced the purchase of narrow-body network planes with a landmark agreement for 70 A321XLRs.

On 4 July, AirAsia signed an MoU in Paris for the purchase of 70 Airbus A321XLR aircraft to support the expansion of its global low-cost carrier network, positioning Kuala Lumpur and Bangkok as key aviation hubs.

AirAsia’s Advisor and Steward, Tony Fernandes, told some 20 journalists, including Khaosod English’s Pravit Rojanaphruk, in a Zoom interview on Friday night Bangkok time that 23 years ago, when he started AirAsia, he had a dream: “My dream 23 years ago was to allow everyone to come to ASEAN.”

Now, said Fernandes, his plan is to enable people in ASEAN to fly low-cost to Europe and the US in the near future.

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Asked how much cheaper it would be to fly from Southeast Asia’s major ports to Europe and the US via AirAsia in the next few years, and vice versa, Fernandes replied 30 to 40 percent cheaper than ordinary airlines, if not 50 percent cheaper.

“The goal here is not to take anyone’s market share but to let people fly to places they never dreamt of going,” Fernandes elaborated his reply. “I think the opportunity is huge.”

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And the trick is in using the new narrow-body planes which can fly up to 9 hours and are more fuel-efficient, connecting Southeast Asian airports in Bangkok and KL with the Middle East, then hopping on to Europe in the westerly direction, while for the East, from Southeast Asia to Taiwan or Japan, then a network hop to the US.

“So really, the world is our oyster now,” he explained.

It also means, said Fernandes, when asked by Khaosod English how the new planes, which are set to be delivered from 2028, will alter low-cost air traffic from Thailand, that Phuket and Chiang Mai Airports will see many direct flights between these Thai airports and cities in India and China.

Fernandes told the journalists that over the years, he became convinced that AirAsia’s strength is in offering low-cost flights. “I don’t think we’re a premium seller,” he said, adding that he believes the airline’s future global network will be “all economy flights, all over the world.”

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AirAsia also released a press statement last night, a few hours after the embargoed interview.

“The A321XLR will enable AirAsia to serve longer-range, underserved routes more efficiently, including into Central Asia, the Middle East, and Europe.

AirAsia Group aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception.

The A321XLR offers up to 20% lower fuel burn per seat, boosting operational efficiency and advancing the Group’s environmental performance goals,” AirAsia stated in its press release issued late Friday night Bangkok time.

Malaysian PM Anwar Ibrahim witnessed the signing of the Memorandum of Understanding alongside several Malaysian Cabinet Ministers.

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Malaysian Prime Minister Anwar Ibrahim (center) and French officials witness the signing of an MoU between AirAsia and Airbus for the purchase of 70 A321XLR aircraft during a one-on-one meeting at the InterContinental Paris Le Grand hotel on July 4, 2025.

The USD12.25 billion deal for 50 A321XLRs with rights for 20 A321XLRs is a major step for AirAsia to “become the world’s first low-cost narrow-body network carrier, anchored by its multi-hub strategy. The aircraft are scheduled for delivery commencing 2028 through 2032.”

“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.”

The press statement also quoted Christian Scherer, CEO Commercial Aircraft at Airbus, who 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,” it also added that the A321XLR unlocks new opportunities for AirAsia to launch non-stop flights linking primary and secondary cities all around the globe.”

The press statement also added that AirAsia Group aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception.

“The new fleet plays a pivotal role in this transformation. AirAsia’s multi-aircraft strategy enables the airline to match capacity with demand, reduce fuel consumption, and support a sustainable, cost-effective growth model in a highly competitive global landscape. The A321XLR also offers up to 20 per cent lower fuel burn per seat than the Airbus A321neo aircraft, significantly improving emissions performance and operating efficiency.”

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