AirAsia Berhad, a wholly-owned subsidiary of Capital A Berhad, has taken a transformative leap in global aviation by signing a landmark Memorandum of Understanding with Airbus for 70 A321XLR aircraft — marking a bold move to become the world’s first low-cost narrow-body network carrier.

The agreement, valued at USD12.25 billion, was signed in Paris and witnessed by Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim. The deal includes 50 firm orders and rights for 20 additional aircraft, with deliveries scheduled from 2028 to 2032.

This strategic expansion will allow AirAsia to serve longer-haul, underserved routes into Central Asia, the Middle East, and Europe — positioning Kuala Lumpur and Bangkok as central global hubs.

“This is about exponential growth,” said Tony Fernandes, CEO of Capital A. “We pioneered low-cost travel in Asia. Now, we’re making ASEAN visible to the world.”

The A321XLR offers 20% lower fuel burn per seat and will join AirAsia’s all-Airbus fleet, enhancing network connectivity, sustainability, and cost-efficiency as the airline targets 150 million annual guests by 2030.