AirAsia, a leading Asian low-cost carrier, signed a memorandum of understanding with Airbus to purchase 50 A321XLR planes, with conversion rights for 20 more. This follows reports that CEO Tony Fernandes was negotiating for 50-70 of these long-range, single-aisle jets, potentially converting part of AirAsia's existing 360-plane Airbus order.

The airline, nearing the end of a restructuring prompted by COVID-19 financial challenges, plans to order an additional 150 jets within a month to finalize its fleet strategy. Fernandes confirmed ongoing talks for smaller aircraft, either Airbus A220s or Embraer E2 jets, but did not specify models for the new order.Based in Malaysia, AirAsia operates a 255-plane fleet, primarily economy-only narrow-bodies. The airline is also addressing an historical order for 15 A330 wide-bodies, with Fernandes noting no cancellations yet. 

To fund expansion, AirAsia plans to issue its first bond in October, with two credit agencies set to rate the company.Fernandes aims to expand AirAsia's reach to North America and Europe at budget prices, leveraging the A321XLR's long-range capabilities. To support this, AirAsia is exploring hub airports in the Middle East, Europe, and Asia-Pacific, with discussions ongoing in four Gulf cities, including Saudi Arabia, Ras Al Khaimah, and Bahrain. This strategic move positions AirAsia to strengthen its global presence while maintaining its low-cost model.