*

In talks to buy 50-70 Airbus A321XLR jets in coming months

*

Also in talks to buy 100 Airbus A220 or Embraer E2 jets

*

Hopes to wrap up restructuring by end of July

(Adds quotes, details, background)

By Tim Hepher

PARIS, June 18 (Reuters) - The CEO of Capital A Group

, Tony Fernandes, said on Wednesday the owner of

AirAsia is in talks to buy 50 to 70 Airbus A321XLR jets

in coming months, but that the first priority is to complete the

group's restructuring.

Asia's largest low-cost carrier also remains in talks to buy

100 Airbus A220 or Embraer E2 regional jets but there

is unlikely to be any announcement on plane orders at this

week's Paris Airshow, he told Reuters in an interview.

"I don't think there'll be an order at this air show. We're

still doing a lot of work with Airbus and other

(manufacturers).... I think we'll look to do something

imminently, in the next 1-3 months," Fernandes said.

"We want to make sure we clear out of our restructuring. The

great thing is, we're back in the growth stage."

The Malaysia-based low-cost carrier operates an all-Airbus

fleet and is one of Airbus' biggest customers.

The comments came after industry sources said AirAsia was in

advanced discussions to place an order for at least 100 Airbus

A220 regional jets at the Paris Airshow, with rival Embraer ( ERJ ) also

vying for a chance to penetrate the all-Airbus carrier.

AirAsia has also had an offer from China's COMAC, Fernandes

said.

AirAsia has previously said it was looking to add smaller

planes for regional routes.

One of Airbus' biggest customers with over 350 planes on

order, AirAsia has not placed an order since before the

pandemic, but ended a gap in deliveries by taking four Airbus

jets last August, marking what it described as a new growth

milestone.

It has been steadily restructuring its order book as it

faced financial difficulties.

The company, hard hit by pandemic travel restrictions, was

classified by Malaysia's stock exchange as financially

distressed in 2022. It says it hopes to exit this so-called PN17

status by the middle of this year as it pursues a recovery.

Capital A plans to sell its AirAsia aviation business to

long-haul unit AirAsia X to consolidate long and

short-haul operations under a single AirAsia brand.

The group also needs consent letters from creditors, of

which it has "virtually all of them," a Thai approval and to

raise new capital.

"I am hoping we can wrap up this process in June and

complete everything by the end of July. We are getting closer

and closer," Fernandes said.

Fernandes said new investors had been "locked in," but

declined to provide specific details ahead of any formal

announcement.