Airbus Canada has secured a significant contract with AirAsia for the purchase of 150 A220 jets manufactured in Canada, representing a major boost for Quebec’s aviation sector in terms of both production and revenue. This deal, the largest single firm order for these narrow-body aircraft, is a significant milestone for the manufacturer, with the first A220-300 expected to be completed by the first quarter of 2028.
The agreement showcases Quebec’s pivotal role in the global aviation industry, following Airbus’s acquisition of a majority stake in Bombardier’s struggling CSeries program in 2018, subsequently rebranding it as the A220. The partnership highlights the importance of government support in fostering innovation within the aviation sector, as emphasized by Lars Wagner, the head of Airbus’s commercial aircraft division.
Prime Minister Mark Carney hailed the deal as a testament to the benefits of diversifying trade partnerships beyond the United States, strengthening connections between Canada and Southeast Asian nations. The expansion of the aerospace industry not only elevates Quebec on the international stage but also provides substantial employment opportunities, with the Mirabel facility currently employing nearly 5,000 workers.
Despite recent production challenges faced by Airbus at its Montreal plant, efforts are underway to increase output to meet demand, aiming to produce 13 planes per month by early 2028. The AirAsia deal signifies a significant milestone for both governments and workers in Quebec, demonstrating resilience and forward-thinking amid market uncertainties.
AirAsia’s CEO justified the substantial aircraft order during challenging times as an opportunity for bold decision-making and strategic expansion, underscoring the company’s long-term vision. With the A220-300 accommodating between 100 and 160 passengers on medium-haul flights, the aircraft’s versatility and efficiency have contributed to its popularity among global operators, with over 500 units delivered to various airlines worldwide as of March 30.
The financial details of the AirAsia purchase were not disclosed, but industry experts suggest that significant discounts may have been negotiated, considering the scale of the order. This milestone agreement not only solidifies economic ties but also signifies a vote of confidence in Canadian manufacturing and expertise within the aerospace sector.