Airbus Canada has secured a significant contract with AirAsia for the acquisition of 150 A220 jets, a major boost for Quebec’s aviation sector. This deal represents the largest single firm order for these narrow-body planes, which are manufactured in Mirabel, Quebec. The first A220-300 is scheduled to be produced in early 2028, as confirmed by AirAsia CEO Tony Fernandes.
The agreement highlights Quebec’s prominent position in the global aviation industry, following Airbus’s acquisition of the majority of Bombardier’s CSeries program in 2018, subsequently rebranded as the A220. Government support has been instrumental in fostering innovation within the sector, emphasized Lars Wagner, head of Airbus’s commercial aircraft division.
During the announcement, Prime Minister Mark Carney emphasized the importance of diversifying trade partnerships beyond the United States, strengthening ties between Canada and Southeast Asian countries. The deal signifies a commitment to advancing economic cooperation and investment in the face of challenges.
Airbus has encountered production challenges at its Montreal plant, struggling to meet output targets due to various supplier issues. Despite these obstacles, Airbus Canada CEO Guillaume Chevasson expressed optimism about the program’s future profitability, aiming to increase production to 13 planes per month by early 2028. All 150 AirAsia aircraft will be assembled at the Mirabel facility, which currently employs around 5,000 workers.
The announcement was hailed as “great news” by experts, recognizing the positive impact on governments and workers in Quebec. AirAsia’s bold decision to place a substantial order during challenging times reflects a strategic move to capitalize on opportunities amidst market uncertainties. The A220-300, priced at $91.5 million US, offers efficient and versatile capabilities for airlines, with over 500 units already delivered to operators worldwide.
The partnership between Airbus Canada and AirAsia symbolizes a significant milestone in the aviation industry, showcasing Quebec’s expertise and contributing to economic growth and job creation in the region.
