Malaysian low-cost airline AirAsia will lease three units of the Airbus A320, previously operated by MYAirline, to lessor Castlelake. The three aircraft were among MYAirline's nine A320s, which ceased all flights in October and will join AirAsia Malaysia's fleet of just under 100 A320s.

These A320s will provide AirAsia with the additional capacity needed for growth as it plans to significantly expand its network to China and India in the first quarter of next year to meet growing demand for leisure travel. The company must also address the gap left in the market after the suspension of MYAirline.

Several AirAsia planes parked at the gates of Kuala Lumpur International Airport.

According to ch-aviation, these units were actually operating for the AirAsia and Thai AirAsia fleets before MYAirline put them into service in 2022. These aircraft are owned by Castlelake, an investment company with a significant stake in aviation that leases several A320 and A330 aircraft to AirAsia. group and is about to become one of the new owners of the Scandinavian airline SAS.

Short-lived MYAirline

There is no shortage of stories about the problematic MYAirline. The airline, once a startup looking to challenge low-cost giant AirAsia Malaysia, suspended operations in October this year, less than a year after its first flight. The suspension was due to financial pressures and the rather sudden suspension left many passengers stranded.

A MYAirline Airbus A320 is about to land.

At the height of its operations, the airline had a fleet of nine A320s and operated domestic and international flights to Bangkok. The airline also reached one million passengers in June this year, with an impressive 91% load factor in the first half of 2023.

However, the airline's financial situation soon deteriorated and all flight operations were suspended. Recent investigations, many of which are still ongoing, have revealed more details about the airline's demise and led to its founder being detained just days after the airline ceased operations in October.

Recently, it has emerged that there may be more to the story, as the airline is reportedly in talks with its investors to return to the skies. The airline has retained most of its employees, although many have not been paid, according to ch-aviation. There are also several aircraft still registered in his name.

The transformation of the AirAsia fleet

AirAsia's initial fleet consists of a combination of Boeing and Airbus, operating the Boeing B737 in addition to Airbus variants. The airline eventually transitioned to an all-Airbus fleet, with the AirAsia brand operating only the A320 family and AirAsia X operating the widebody A330s.

Since the slowdown in travel due to COVID-19, AirAsia Malaysia has significantly slowed its fleet expansion. Only four A320s have entered service since 2020, most of which were transferred from AirAsia Japan, which ceased operations in 2020 due to insufficient demand.

AirAsia Malaysia's first A321neo

AirAsia's future will be the A321neo as all of AirAsia's A320 orders have been converted. With up to 362 A321neos ordered by the AirAsia group, the type will become the backbone of AirAsia's fleet and will replace the A320s. AirAsia Malaysia currently has two A321neos, both delivered before the pandemic, while Thai AirAsia has two more of this type. Deliveries of this type are expected to resume in 2024 and continue until 2035.