Airbus reaches deal to restructure AirAsia jet order.

Airbus has agreed to cut prices or reschedule delivery for hundreds of jets ordered by Malaysia’s AirAsia to salvage a contract worth tens of billions of dollars with its largest Asian customer, industry sources said on Friday.

See also: Air New Zealand and Airbus to investigate future of hydrogen powered planes.

The restructuring deal resets relations between two of the industry’s closest partners, and lifts uncertainty over the fate of up to 400 A320-family single-aisle jets yet to be delivered, Reuters reported.

The AirAsia deal does not involve cancelling jets on order but includes a new delivery schedule and price cuts or other improvements in terms, the sources said.

See also: Azores Airlines breaks record for longest flight made with an Airbus A321.

AirAsia said last year it would stop taking deliveries of all Airbus jets and review remaining orders.

Industry sources said it had also stopped sending progress payments to Airbus, prompting the planemaker to suspend plans to produce jets on order pending the new restructuring deal.

The deal comes as other airlines in Asia that have ordered hundreds of jets to secure their growth are in the midst of restructuring or are expected to press for relief.

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