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PARIS – Malaysia’s biggest airlines sealed Airbus SE deals worth US$20 billion (S$25.5 billion) as Prime Minister Anwar Ibrahim wrapped up his European tour.
- AirAsia Bhd reached a tentative agreement to purchase as many as 70 extended-range Airbus single-aisle jets that could reach US$12.3 billion.
- Malaysia Airlines Bhd ordered 20 more A330neo widebody planes, in a deal worth US$7.5 billion, according to Bloomberg calculations before industry discounts are applied.
With aircraft diplomacy taking centre stage, the Malaysian government also said it was planning to purchase two maritime patrol aircraft for the Royal Malaysian Navy, 28 Leonardo SpA AW149 helicopters, and naval vessels from Italy to bolster its security, Bernama reported on July 4, citing the prime minister.
The buying spree, particularly for commercial jets, comes as both Airbus and its American rival Boeing Co. benefit from trade visits and bilateral tariff negotiations.
Boeing’s bumper US$96 billion deal for 210 aircraft for Qatar Airways was announced during US President Donald Trump’s Middle East tour in May. An order for 32 Boeing 787 Dreamliners by British Airways parent IAG SA was the centrepiece of a new US-UK trade deal.
AirAsia signed a memorandum of understanding covering 50 A321XLR jets with options for 20 more, according to a company statement on July 4. Under the provisional agreement, Airbus’s longest-range narrowbody jet will begin arriving by 2028, Mr Tony Fernandes, chief executive officer of AirAsia parent Capital A Bhd, told reporters.
“A narrowbody obviously gives us a lot less risk in terms of starting new routes,” he said on a video call. “This order allows us to have a narrowbody fleet that can cover the world.”
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