Airbus Set to Unveil Landmark Order for Up to 150 Canadian-Made A220 Jets from AirAsia

Key facts

• Airbus will announce an order for as many as 150 A220 jets from AirAsia, according to a senior federal official.
• Prime Minister Mark Carney and Quebec Premier Christine Fréchette are expected to attend the announcement at the Airbus complex in Mirabel, Quebec.
• AirAsia is a Malaysian low-cost carrier with an all-Airbus fleet of about 250 planes.
• The A220 is designed and built largely in Canada, with assembly in Mirabel and Mobile, Alabama.
• Airbus needs to produce 14 A220s per month to break even; current output is 7-8 per month, with a target of 12 per month this year.
• Export Development Canada is expected to help finance the aircraft.
• The order highlights Canada's strategy to double non-U.S. exports within a decade amid U.S. tariffs.

A Landmark Deal for Canada’s Aerospace Industry

Airbus SE is poised to announce one of the largest orders ever for its Canadian-made A220 airliner, a multibillion-dollar sale to budget carrier AirAsia that reinforces Quebec’s position as a global hub for commercial aircraft production. The European aerospace giant will unveil details on Wednesday of a long-awaited order for as many as 150 planes, according to a senior federal official who spoke on condition of anonymity because they are not authorized to speak for the companies. Prime Minister Mark Carney is expected to join Quebec Premier Christine Fréchette and Airbus officials at the company’s complex in Mirabel, Quebec, the primary assembly site for the A220. Union leaders and local politicians have confirmed they were also invited to the event, signaling the political and economic significance of the announcement.

AirAsia’s Ambitious Expansion Plans

AirAsia, a major multinational low-cost carrier based in Malaysia and founded by businessman Tony Fernandes, operates an all-Airbus fleet of roughly 250 aircraft. The airline was hit hard during the COVID-19 pandemic and underwent restructuring, but it is now aggressively pursuing growth. Among its plans, the carrier aims to establish a Middle East hub in Bahrain that would serve as a gateway for flights into Europe. The order for up to 150 A220 jets would significantly expand AirAsia’s fleet and support its strategy to capture new markets. The deal also underscores the carrier’s confidence in the A220, a narrow-body jet designed for efficiency on short- to medium-haul routes.

Political and Economic Stakes for Canada

The order carries deep political resonance for Canada, coming as the Carney government seeks to reduce the country’s economic dependence on the United States, which has imposed tariffs that are hurting many Canadian exporters. “Politically, there’s something important here” in showcasing Canada’s aerospace manufacturing capability, said Mehran Ebrahimi, an aerospace specialist at the University of Quebec at Montreal. Ebrahimi noted that the deal involves more than 100 jets designed and built largely in Canada, not in Europe or the United States, the traditional bases of Airbus and Boeing. “It slides right into Mr. Carney’s strategy of saying ‘We can sell internationally and broaden our export markets,’” he said. “The fact this is a buyer in Asia, where he’s put a lot of emphasis recently and travelled there, is significant.” Export Development Canada is expected to help finance the aircraft, further aligning with the government’s goal to double non-U.S. exports within the next decade.

Airbus’s Long Road to Profitability on the A220

For Airbus, the AirAsia order validates its 2018 decision to take over the A220 program from Bombardier Inc., which had originally developed the aircraft as the CSeries. Since then, Airbus has made progress on sales and production, but significant obstacles remain. The company has stated it needs to produce 14 A220s per month at its facilities in Mirabel and Mobile, Alabama, for the program to break even. That target has proved elusive. The current production rate is seven to eight jets per month, and the new goal is to stabilize output at 12 per month this year, with no specific timeline for reaching the 14-jet threshold. The AirAsia order, while a major commercial win, adds pressure on Airbus to ramp up manufacturing efficiency and deliver on its promises to investors and its partner, the Quebec government.

A Boost for Quebec’s Aerospace Hub

The announcement cements Quebec’s role as a key global center for commercial aircraft production. The A220 program is a cornerstone of the province’s aerospace sector, which employs thousands of skilled workers. The presence of Prime Minister Carney and Premier Fréchette at the event underscores the high-level support for the industry. Local politicians and union leaders have been invited to the announcement, reflecting the deal’s importance for jobs and economic development in the region. The order also sends a signal that Canadian-made aircraft can compete on the world stage, particularly in fast-growing Asian markets.

Outlook: Challenges and Opportunities Ahead

While the AirAsia order is a milestone, Airbus must still overcome production bottlenecks to turn the A220 program into a profitable venture. The company’s ability to scale up output to 12 jets per month this year will be closely watched by investors and the Quebec government, which holds a stake in the program. For Canada, the deal represents a tangible step toward diversifying export markets away from the United States. However, the broader goal of doubling non-U.S. exports within a decade remains ambitious, and the success of this strategy will depend on sustained demand for Canadian products abroad. The AirAsia order, if finalized, provides a strong foundation for that effort.

The bottom line

• Airbus is set to announce an order for up to 150 A220 jets from AirAsia, one of the largest orders for the Canadian-made aircraft.
• Prime Minister Mark Carney and Quebec Premier Christine Fréchette will attend the announcement in Mirabel, Quebec.
• The deal supports Canada’s strategy to reduce economic reliance on the U.S. by boosting non-U.S. exports.
• AirAsia plans to use the A220s to expand its network, including a new Middle East hub in Bahrain.
• Airbus still faces production challenges, needing to increase output from 7-8 jets per month to 12 this year, with a break-even target of 14 per month.
• Export Development Canada is expected to provide financing for the aircraft.