The carrier, which also has affiliates in Thailand, India and the Philippines, is set to begin operating AirAsia Japan in October.
"With this aircraft we believe we will hit 100 million passengers in the not-too-distant future", Fernandes said, adding negotiations started over a meal in an Iranian restaurant in London a year ago, for which he said he paid the bill.
Airbus has said that it is not concerned about competing with Boeing should the aeroplane manufacturer decide to build a new version of the 757, but it has its own problems to contend with. Industry sources told Reuters on Sunday that AirAsia was lining up a deal with Airbus.
In recent years, AirAsia has become the A320 family's largest customer.
According to Fernandes: "The A321neo will help us to meet ongoing strong demand as well as further reduce our cost per "Available Seat Kilometre" across the group, which will translate to lower air fares for our guests".
"We look forward to welcoming Kunming Airlines as a 737 MAX 7 launch customer in China and finalizing the deal in the near future", said Boeing Commercial Airplanes President and CEO Ray Conner.
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The company said in a statement earlier on Tuesday that it was not now pursuing any new joint venture proposals and was not formally considering a dual-listing.
The deal was valued at 1.4 billion USA dollars (£1.1 billion). Airlines are now moving towards more fuel efficient planes, rather than super large aircraft, to cut down costs.
Tui has ordered 11 new aircraft at a cost of $1.4 billion. The deal, valued at $864 million at current list prices, was previously attributed to an unidentified customer on Boeing's Order & Deliveries website. Boeing said it expected overall demand for new planes over the coming 20 years to outstrip its previous forecasts by 4.1 percent, predicting total demand at a combined 39,600 jets worth $5.9 trillion.
A SpiceJet spokesman confirmed that chairman Ajay Singh is attending this week's Farnborough Air Show in the United Kingdom, but declined to say whether an order announcement is imminent.
The trend is prompting low-priced operators that have already amassed large order backlogs to add even more planes, with India's Spice Jet Ltd. also weighing an order for as many as 100 737s or A320s, though not certain to reach a decision this week.