Airbus Canada has clinched a significant agreement with AirAsia for the supply of 150 Canadian-manufactured A220 jets, marking a major win for Quebec’s aviation sector. This deal represents the largest firm order ever received for the narrow-body planes produced in Mirabel, north of Montreal. The first A220-300 is scheduled to come off the production line in the first quarter of 2028, according to AirAsia CEO Tony Fernandes.
Lars Wagner, who leads the commercial aircraft division at Airbus, highlighted the strategic importance of Quebec in the global aviation landscape. The acquisition of the majority of Bombardier’s CSeries program by the French-owned company in 2018, rebranded as the A220, further solidifies Quebec’s position.
Prime Minister Mark Carney emphasized the significance of diversifying trade beyond the United States during the announcement event. He underscored the strengthened ties between Canada and southeast Asian countries facilitated by this agreement. Carney commended the decision to invest in building and expanding economies during challenging times.
Airbus has encountered production challenges at its Montreal facility, struggling to meet the required output levels for profitability. The company aims to ramp up production to 13 planes per month by early 2028. All 150 AirAsia planes will be assembled at the Mirabel site, contributing to the growth of the workforce, which currently stands at nearly 5,000 employees.
The announcement of the deal was met with enthusiasm from various stakeholders. Despite existing risks, including Quebec’s previous investment write-offs, the order for 150 aircraft is seen as a positive development for governments and workers in the region.
AirAsia’s CEO defended the decision to proceed with the purchase amid the current crisis, citing it as an opportunity for bold decisions. The A220-300, with a list price of $91.5 million US, can accommodate between 100 and 160 passengers on flights covering up to 6,700 kilometers. As of March 30, Airbus has delivered 501 A220s to around 25 operators globally.