On Tuesday, Airbus announced that AirAsia would order 150 A220-300s in a new 160-seat cabin configuration for $19 billion. This marks the largest order for the aircraft series and pushes its total lifetime order count past 1,000 amid questions of its fate.
1,000 might not feel like a huge number, but it’s a big win for Airbus. Eight years ago, it bought Canada’s Bombardier, renaming it the Airbus A220. Today, the aircraft is predominantly built in Canada as part of a joint venture between majority owner Airbus and the Government of Québec (which owns 25% of the venture).
That means it also represents a huge win for Canada at a precarious time for its industrial base. Marginalized from its largest trade partner, the United States, the 150-craft order will bring much-needed stability to a country facing setbacks from new tariffs and historical reliance on its southerly neighbor.
Why order the A220?
Many flyers are familiar with Airbus’s more popular A320 series, which competes with Boeing’s 737 aircraft. Their popularity means long waits between ordering aircraft and ultimately taking delivery of them. In fact, the orderbook for these two aircraft types is nearly a decade long, comprising thousands of units in total.
This is where the A220 comes in handy. Separate from Airbus’s crowded European operation, the A220 boasts a shorter orderbook of close to 500 aircraft, which means that AirAsia can start expecting delivery of its aircraft as soon as 2028. That’s quite a bit of time saved, especially if you have the demand to add capacity.
Sidestepping the A320 family’s lengthy waits is one of the greatest draws to this aircraft, with over 60% of the type’s orders coming since Airbus acquired it in 2018. However, aside from shorter waits, the aircraft’s operators are adding it to their fleet for various other reasons as well.
How do airlines use the A220?
Airbus purports that the A220 is “the most modern airliner in its size category,” and boasts “the longest range, lowest fuel consumption and widest cabin in its class.” It’s lighter than the A320 and 737 and boasts one of the most fuel-efficient engines available on an aircraft today. Its capability and handling make it appealing for different sorts of use cases.
DeltaAir Lines, the aircraft’s largest operator, has been using its 85 A220s to retire its older A320 and 737-700 aircraft on specific routes. JetBlue, on the other hand, has replaced its aging Embraer E190s with the type to add more seats and save on fuel. Cost has also been a huge motivator for budget carriers like Breeze and airBaltic, the latter of which is the only airline in the world that only operates A220s.
However, aside from cost, its handling is another huge factor. The A220’s lighter frame and fuel-efficient engine are capable of landing at urban hubs that require steeper approaches into shorter runways, which is one reason why Air France and Swiss have picked up the type. This capability also means it handles well at higher altitudes and in hot or dry conditions.
AirAsia is likely to copy the budget model by packing more seats onto its aircraft, allowing it to operate even more efficiently.
The future of A220?
The A220’s biggest drawback is its length. While the A320neo starts at 150 seats, the A220 has a capacity of 120–150 seats. The AirAsia 160-seat configuration is the most congested version of the aircraft to date, made possible through the addition of a second exit door.
There’s likely appetite for a larger variant of the A220, one that would put it on equal footing with the A320 series. AirAsia Founder Tony Fernandes even said during the press conference, “If Airbus builds the A220-500 for up to 185 passengers, AirAsia will buy another 150.”
That is likely a feeling shared across the aviation industry.
A new A220 variant wouldn’t just have the opportunity to steal business from the decade-long backlog down south and across the pond. It would also benefit from improved economics (10–12% less fuel per seat) and a shorter time to delivery (as soon as two years).
For passengers, it’s also a huge win, with its 2-3 layout, meaning fewer middle seats. The seats are also wider than those on many other aircraft, while the windows are considerably larger. In short, it’s likely to make for a better overall flying experience.
There are drawbacks, of course
The A220 program is perfect as a replacement for flights flying on shorter or mid-haul regional routes. However, it also has some drawbacks that Airbus will need to confront on a refreshed aircraft if it is to win over airlines.
At this stage, it looks like an A220-500 would serve as a replacement for many aging A320 aircraft, rather than the regional CRJ or ERJ-style aircraft used on extremely short-haul flights. Winning over A320 operators should be easy with the improved seat economics, but Airbus must also reckon with operational challenges with the A220.
For starters, the A220 does not have a traditional Airbus cabin. Almost all Airbus aircraft share a type rating thanks to a common cabin, but the A220 does not have this, since it was built by Canada’s Bombardier.
There’s also the engine. The Pratt & Whitney GTF engine might be efficient, but it has its problems in hotter environments. Engine troubles in harsh climates have been a theme, to be fair, but the more demanding maintenance schedule might be a pain for some airlines. Maintenance is worsened in part because the A220 has a separate supply chain from the A320 and 737-like aircraft.
Lastly, the A220 series only supports bulk-load cargo, rather than containerized Unit Load Devices (ULDs). This would be a huge factor for airlines that rely on cargo revenues as well as passenger revenues.
A decision is coming
The A220 series was fraught with doubt because of tepid demand, in large part because it’s distinct from all other Airbus aircraft. However, AirAsia’s order injects a bit of life into the program, even if it’s hard to tell whether the company will ultimately take delivery of all of those aircraft.
To that end, Airbus’s CEO promises a decision on the largest A220 variant. Such a move would be a shot across the bow to Boeing, which is lagging in getting the shortest and longest variants of its 737 MAX jets approved after years of delay. An A220-500 would simply blindside Boeing, with little room for a quick response given its troubles.
It could even surprise Airbus, too. While the A320 family remains enormously successful, Airbus probably is looking for a reason to stop building the less profitable A320neo so it can focus its efforts on the real moneymaker: the bigger A321neo. It stands that excitement for an A220 stretch could well reshape the constructor’s own order book.
