Watson Farley & Williams (“WFW”) advised the AirAsia group (“AirAsia”) on its landmark agreement with Airbus for the purchase of 150 new Airbus A220-300 aircraft, with purchase options for a further 150 A220 family aircraft.
Valued at approximately US$19bn at list prices, this is the largest single firm order placed for A220 aircraft to date globally. This marks AirAsia’s first order since the COVID-19 pandemic, supporting the airline’s ambitious expansion strategy.
The order positions AirAsia as the global launch customer for the A220-300’s high-density 160-seat configuration, which will serve as a next-generation aircraft optimised for efficiency and profitability on mid-density routes. It benefits from advanced engine technology, delivering approximately 20% improved fuel efficiency and reduced emissions compared to previous generation aircraft in its class.
The agreement was announced at Airbus’ Mirabel facility in Montreal, with Capital A CEO and Advisor to AirAsia Tan Sri Tony Fernandes, Canadian PM Mark Carney and other senior government and industry leaders attending, underlining its significance for both AirAsia’s growth and the strengthening of Canada’s ties with Asian aviation markets.
AirAsia is a multinational low-cost airline headquartered in Kuala Lumpur, Malaysia, operating domestic and international flights across Asia.
The WFW London Aviation & Aerospace team that advised AirAsia was led by Assets and Structured Finance Partner Chris Mitchell, supported by Senior Associate Liam Clozier.
The team provided comprehensive legal support across all aspects of the transaction, including structuring, negotiation of the purchase agreement and strategic advisory related to the airline’s long-term fleet and financing considerations.
Chris commented: “This is a truly market-defining transaction and one of the largest aviation deals in recent years, with a list price of US$19bn. It reflects AirAsia’s bold growth strategy and reinforces its position at the forefront of next-generation fleet development. We are proud to have supported on a deal of this scale and complexity, demonstrating WFW’s ability to deliver at the very top end of the aviation market”.
This transaction further strengthens WFW’s position as a leading adviser in the aviation sector, with a strong track record supporting airlines, lessors and financiers on complex, high-value aircraft orders and fleet modernisation programmes.
