“This is the biggest deal for our maintenance work. Cooperation is a proper strategy for budget airlines, as the deal can help reduce the cost of repair and maintenance,” Tony Fernandes, group chief executive officer of AirAsia, said yesterday.

Under the agreement, the AirAsia fleet of Airbus A320neo models will be serviced for 10 years from this year onwards.

Tony said the pact would create business worth Bt37 billion over the next decade.

AirAsia is scheduled to have a total of 304 Airbus A320neo planes by 2028, and took delivery of its first new aircraft on September 7 in Hamburg.

AFI KLM E&M will also provide tailor-made services for the low-cost carrier and has an experience with large-scale support for parent airlines or third-party airline clients.

The partnership will help AirAsia meet with large-scale requirements for adaptive and world-class support, since the Air France-KLM affiliate firm is a major multi-product maintenance, repair and overhaul (MRO) provider.

AFI KLM E&M offers comprehensive technical support for airlines, ranging from engineering and line maintenance to engine overhaul, aero structure and fan thrust reverser (FTR) support, as well as management, repair and supply of aircraft components, structured around a powerful logistics network.

The firm provides support to almost 1,500 aircraft operated by 200 major international and domestic airlines.

AirAsia has already tested the effectiveness of the MRO solutions, which currently provides component support for the fleet of A330s operated by AirAsia X, AirAsia’s budget long-haul subsidiary.

Franck Terner, chief executive officer of Air France, said: “AirAsia’s extending service and solution for the brand-new A320neo fleet has been given to us.”

AirAsia Group flies to more than 120 destinations across Asia, Australia and New Zealand, the Middle East and Africa. It is also the only airline that flies to all 10 countries in Asean, with operations in Malaysia, Thailand, Indonesia, the Philippines, India and Japan.

The airline uses a 100-per-cent Airbus fleet of more than 200 aircraft, with orders for a further 300 A320neo and 100 A321neo planes, along with A330neo and A350 aircraft.

According to Tony, AirAsia will |continue expanding its network in the region as well as between mainland China and Thailand despite the drop in arrivals due to the crackdown on zero-dollar tours.

“We will create more business to regain tourists by adding more routes, doing more marketing, launching a free-seat campaign and boosting individual tourists. We now have a team working specifically on the China market,” he said.

AirAsia also plans to develop Langkawi in Malaysia as a new hub in order to link it with other cities in the region, and is also eyeing the fast-growing Philippine market.

AirAsia also recently completed its new Bt1.26-billion head office called Red Q right next to the low-cost terminal in Kuala Lumpur.