AirAsia began a gradual conversion of its fleet from the Boeing 737–300 to the Airbus A320-200, with the first order made for 40 Airbus A320 aircraft and 40 more on option in a Memorandum of Understanding made in 17 December 2004. When the contract was signed on 25 March 2005, the order was increased to 60 firm orders with 40 on option.The first six Airbus A320s were delivered on 9 December 2005, with the remaining 54 aircraft from the 2005 order to be delivered by June 2009.
On 19 July 2006, the airline exercised the options of 40 Airbus A320-200s to increase its total firm orders to 100 aircraft, with another 30 on option. It made a third order of 50 firm A320-200s and increased the options to 50 on 8 January 2007, with delivery expected to be completed by December 2013. The Airbus A320-200 was expected to completely replace the Boeing 737–300 fleet at the Kuala Lumpur base by July 2007.[40] The airline made its latest order of 25 firm orders on 25 November 2007, bringing its total orders of Airbus aircraft to 175 with 50 on option.
In August 2009, AirAsia had signed an amendment agreement with Airbus to defer the delivery dates for 8 of its A320s aircraft by four years to 2014 due to "infrastructural constraints" at the existing low-cost carrier terminal (LCCT) in Sepang as it cannot accommodate its fleet expansion. The rationale to scale down on the delivery of aircraft in 2010 and possibly 2011 is to enable AirAsia to optimize its fleet and avoid the costs associated with leaving idle or under- utilized aircraft due to infrastructural limitations, avoiding having to incur depreciation, interest expense and other costs without earning revenue. The infrastructural constraints will continue at the current airport until the new low-cost carrier terminal is constructed. Earlier In February 2009 the Malaysia's government vetoed an ambitious plan by AirAsia to build a 460-million-dollar airport nearby as KLIA East @ Labu.
In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show. The planes are due to become available in 2015, and the deal is the largest number of commercial aircraft in a single order in history.The deal was worth $18 billion at list prices, although it is likely that AirAsia would have obtained a substantial discount from those prices.Singapore based analyst Shukor Yusof said the deal had the potential to rival American Southwest Airlines and make Air Asia the world's biggest low cost aircraft carrier.The deal makes AirAsia Airbus' single biggest customer.
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