Expert: Purchasing A321XLR aircraft will bring a radical shift in AirAsia’s financial crisis

Captain Pilot Laith Al-Rashid stated that Malaysia Airlines’ decision to confirm orders for the Airbus A321XLR aircraft represents a fundamental shift in its operational processes and is part of its strategy to overcome financial difficulties.

He explained in an interview that the company has been classified under “Practice Note 17” on the Malaysian stock exchange, a designation given to companies facing financial challenges that require restructuring.

He added, “AirAsia has undergone extensive restructuring and divested several non-core assets. It is the world’s first low-cost airline to confirm an order of this magnitude for A321XLR aircraft, demonstrating the company’s resilience and ability to adapt.”

Al-Rashid noted that the narrow-body A321XLR differs from its sibling, the A321Neo, in terms of efficiency, offering an additional 20% fuel savings per seat and a range of up to 8,700 kilometers, enabling long-haul flights at lower costs.

When asked about AirAsia’s position in the competitive landscape of low-cost carriers in Asia, Al-Rashid said, “The market is experiencing rapid growth, and competition is intense. If AirAsia establishes a hub in the Middle East, it will strongly compete with existing low-cost carriers, as it would be the first in this sector to operate flights exceeding 8 or 9 hours.”

He explained that the routes covered by the airline could extend directly to Europe and North Africa, potentially encouraging some passengers to switch from traditional airlines’ economy class to low-cost flights with carriers like AirAsia.

He added that AirAsia is one of the largest low-cost airlines in Asia, headquartered in Kuala Lumpur and largely owned by Capital A. It operates with an unconventional management approach, reflecting a bold yet calculated strategy.

He highlighted that the company has confirmed an order for 50 new aircraft, along with 20 optional orders, with plans to replace previous orders for Airbus A220s with the A321XLR model. This move opens the door for AirAsia to enter new markets.

He noted that the new aircraft can fly for approximately 9 hours, connecting Southeast Asia with the Middle East, Central and Eastern Europe, and even North Africa—a significant shift in the operational model of low-cost airlines.

He also mentioned AirAsia’s interest in establishing new operational hubs in Gulf countries such as Saudi Arabia, Ras Al Khaimah, and Bahrain, allowing travelers to fly from Asia to Europe with just one stop.

He continued, “This presents both an opportunity and a challenge for airlines in the region. It could also be an area for Gulf partnerships and investments with companies like AirAsia, especially given its ambitious expansion plans.”

In another context, Al-Rashid commented on the impact of air traffic controller strikes in France, which have drawn widespread criticism from European airlines like Ryanair and Air France-KLM, saying, “France is a pivotal point for intercontinental flights, and any disruptions there directly affect air traffic in Europe and beyond. Air traffic controllers are demanding better working conditions and salaries, which is understandable given the immense pressure they face.”

He emphasized that major countries like France and the UK must take serious steps to improve air traffic controllers’ working conditions, as they play a crucial role in securing flights and ensuring smooth air traffic. He added, “Air traffic controllers assign shorter flight paths, saving fuel, time, and enhancing safety. Therefore, improving their working conditions should be a priority.”