Malaysia has just recorded one of the biggest deals in the history of commercial aviation. Its two flagship carriers—AirAsia and Malaysia Airlines—have signed contracts worth a combined US$20 billion (around RM94 billion) for the purchase of Airbus aircraft.
The deal was inked during Prime Minister Anwar Ibrahim’s official visit to Europe. But beyond aviation business, the trip also served as a platform for broader diplomatic engagement in defense and technology. Let’s take a closer look at the key highlights behind this landmark agreement.
AirAsia Orders 70 Long-Range Jets
AirAsia made a bold move by signing a memorandum of understanding (MoU) to purchase up to 70 Airbus A321XLR aircraft—the long-range variant of the popular narrow-body jet. The deal could be worth up to US$12.3 billion.
The agreement includes 50 firm orders with an option for 20 additional units. Deliveries are scheduled to begin in 2028.
Tony Fernandes, CEO of Capital A (AirAsia’s parent company), said the choice of the A321XLR is a strategic one, allowing the airline to open new routes with lower risk.
With its smaller size and greater fuel efficiency, the A321XLR enables AirAsia to explore destinations across China, India, and other parts of the Asia-Pacific that would be less viable with larger, wide-body aircraft.
Interestingly, AirAsia also has plans to launch a new hub in the Gulf region and expand its routes into Europe. Fernandes added that the company is currently mapping out its fleet strategy for the next 15 years, which could include up to 150 new aircraft.
Malaysia Airlines Expands A330neo Fleet
Not to be outdone, national carrier Malaysia Airlines has announced the purchase of 20 additional Airbus A330neo jets, bringing the total order value to US$7.5 billion before industry-standard discounts.
When combined with previous orders, Malaysia Airlines’ A330neo fleet will total 40 aircraft, with deliveries scheduled between 2029 and 2031.
Group Managing Director Izham Ismail stated that this move represents a long-term commitment to building a modern, efficient, and sustainable fleet.
“This additional order reinforces our long-term vision of building a future-ready fleet that supports sustainable growth, delivers consistent value to our passengers, and strengthens our competitiveness in key markets,” said Izham Ismail in a statement.
Not Only Planes, But Also Defense Assets
This major deal goes beyond the civil aviation sector. The Malaysian government also announced plans to purchase two maritime patrol aircraft, 28 Leonardo AW149 helicopters, and several warships from Italy.
These acquisitions are part of Malaysia’s efforts to bolster national maritime security and enhance defense cooperation with European partners.
Economic and Defense Diplomacy
Prime Minister Anwar Ibrahim’s visit to France served as a platform for strategic diplomacy. France is not only one of Malaysia’s key trading partners within the European Union, but also a vital source of foreign direct investment—particularly in high-tech and strategic sectors.
According to Malaysia’s Ministry of Foreign Affairs, total bilateral trade between Malaysia and France reached RM15.95 billion in 2024, with RM6.26 billion recorded in just the first five months of 2025.
Global Competition in the Aviation Industry
Interestingly, this wave of high-value purchases also reflects the global dynamics of the aviation industry. Just like Airbus, its chief competitor—Boeing—also leverages international diplomacy to secure massive contracts.
For instance, Boeing once announced a landmark US$96 billion deal with Qatar Airways for 210 aircraft during a U.S. presidential visit to the Middle East.
