Airbus Canada has inked a substantial agreement with AirAsia for the procurement of 150 Canadian-manufactured A220 jets, marking a significant boost for Quebec’s aviation sector. This deal represents the largest firm order to date for the narrow-body aircraft produced in Mirabel, north of Montreal. The first A220-300 is slated to enter production in the initial quarter of 2028, according to AirAsia CEO Tony Fernandes.
Lars Wagner, the head of the commercial aircraft division at Airbus, emphasized the pivotal role of Quebec as a global aviation hub. Following the majority acquisition of Bombardier’s struggling CSeries program in 2018, Airbus rebranded it as the A220.
Prime Minister Mark Carney, who addressed the announcement event, highlighted the agreement as a testament to the advantages of expanding trade beyond the United States, fostering stronger ties between Canada and Southeast Asian nations.
Airbus has encountered production hurdles at its Montreal plant in recent years, striving to reach a sustainable output level. The company cited various supplier challenges, ranging from engine to wing shortages. Despite these obstacles, Airbus Canada CEO Guillaume Chevasson expressed optimism about the program’s path to profitability, aiming to increase production to 13 planes per month by early 2028.
Furthermore, all 150 AirAsia aircraft will be assembled at the Mirabel facility, which currently employs nearly 5,000 workers, with 2,500 hires made in the past four years. The aerospace industry not only showcases Quebec on the global stage but also injects fresh capital into the economy while supporting tens of thousands of employees, as emphasized by Éric Rancourt from the International Association of Machinists and Aerospace Workers union in Quebec.
The announcement was met with enthusiasm from stakeholders, with Carney and Wagner presenting AirAsia’s CEO with symbolic gifts. Despite the positive outlook, risks persist for the government, particularly in Quebec, which has seen the value of its investments fluctuate.
The AirAsia deal, valued at $19 billion, has been hailed as a significant development by experts, offering a glimmer of hope amid industry challenges. AirAsia’s bold decision to expand its fleet during times of crisis underscores the resilience and forward-thinking approach of the aviation industry. The A220-300, accommodating between 100 and 160 passengers on flights covering up to 6,700 kilometers, has gained traction globally, with over 500 deliveries to various operators worldwide as of March 30, as per Airbus reports.
