Airbus Canada has secured a landmark order for 150 A220 jets from AirAsia X Bhd, marking the largest single firm order for the Canadian-made aircraft in the manufacturer’s history and delivering a multibillion-dollar boost to Quebec’s aviation sector. Valued at approximately $6.8 billion based on industry estimates of $45 million per A220-300, the deal was signed at Airbus’ Mirabel facility north of Montreal.
The agreement, celebrated by high-profile figures including Prime Minister Mark Carney and Airbus commercial aircraft CEO Lars Wagner, underscores Quebec’s growing prominence as a global aviation hub. Carney hailed it as the largest order of a Canadian-designed and produced aircraft ever, while the announcement reflects Ottawa’s broader push to diversify trade partnerships beyond the United States. AirAsia, a Southeast Asian budget carrier operating across Malaysia, Thailand, the Philippines, and Cambodia, plans to deploy the first of these jets in the first quarter of 2028.
Tony Fernandes, co-founder of AirAsia, praised the competitive process, noting the tough decision over rival Embraer SA. Wearing a Montreal Canadiens jersey during the announcement, Fernandes hinted at potential future orders if Airbus develops a larger A220 variant seating around 185 passengers. The A220-300, designed for up to 160 passengers, suits AirAsia’s strategy of serving smaller airports and less dense routes, complementing its existing fleet of about 250 Airbus aircraft and a backlog of nearly 400 mostly A320-family jets.
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Despite the triumph, Airbus faces persistent production hurdles at Mirabel. The facility struggles to exceed an average output of seven jets per month, far below the 13 needed to reach break-even by 2028. The A220 program, originally the Bombardier CSeries before Airbus took control with Quebec government backing, has delivered just over half of its roughly 1,000 total orders, with a backlog of 458 planes before this deal added 33% more.
AirAsia’s own challenges loom large as well. The carrier, hit hard by soaring jet fuel prices amid regional geopolitical tensions, lacks fuel hedges and faces limited ability to pass costs to budget-conscious passengers.
Production ramp-up hinges partly on integrating assets from Spirit AeroSystems Holdings Inc., acquired last year, including a Belfast wing-making facility.
The deal cements a critical milestone for the A220, a program once on shaky ground but now poised for growth. With AirAsia’s order pushing the backlog to over 600 jets, Airbus Canada’s Mirabel plant faces a defining test to scale output by 2028.
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