Airbus secures 150-plane order with AirAsia in multi-billion dollar boon for Quebec aviation

Airbus Canada has signed a trade to furnish AirAsia with a monolithic dictate of 150 of its Canadian-made A220 jets in a multibillion-dollar coup for Quebec's air power industry.

The agreement with the low-cost Malaysian airline marks the largest single firm order for the narrow-body planes — assembled north of Montreal in Mirabel — in the manufacturer's history.

It also underscores Quebec's role as a key hub in global aviation, said Lars Wagner, who heads the commercial aircraft division at Airbus, which bought a majority of the Bombardier C Series program in 2018 and rebranded it as the A220.

Prime Minister Mark Carney, who was on hand at the announcement Wednesday, framed the deal as an example of the benefits that flow from diversifying trade beyond the United States.

The agreement strengthens links between Canada and southeast Asian countries, he said, recalling a meeting he had with AirAsia CEO Tony Fernandes in the Malaysian capital of Kuala Lumpur last fall.

"We shared a vision of deepening ties between those countries that, in this crisis that we're still living through, are choosing to build in the face of adversity — countries that have the confidence to open up, to link their economies, to invest in their workers, to move forward, not turn back," Carney told the audience at the Mirabel facility.

"Thank you for the trust you're placing in Canadian workers, in Quebec, in Mirabel. You're choosing the best at exactly the right time," the prime minister told Fernandes on Wednesday.

Airbus has faced production challenges at its Montreal-area plant over the past few years, struggling to churn out more than seven jets per month on average — half of the threshold needed to break even.

The French company has pointed to a range of supplier problems, citing shortages that run the gamut from engines to wings.

"The jury's still out as to whether the Canadian product that Carney's so gushing about is able to be produced at a rate that is profitable for the manufacturers," said John Gradek, who teaches aviation management at McGill University.

Nonetheless, Western University professor Geraint Harvey said the announcement comes as "great news" for the federal government and for workers in Quebec.

"One-hundred-fifty aircraft is a massive order. It is also an interesting move given the situation in the Middle East and the current volatility of fuel prices and the impact on commercial airlines," Harvey said, noting that many airlines are slashing flight schedules rather than expanding.

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