JetBlue Airways has signed a $1.03bn agreement with Pratt & Whitney, a division of United Technologies, to purchase 86 PW1100G-JM engines to power 40 Airbus A320neo jets.

In addition, both companies will also sign a long-term PureSolution maintenance service contract.

JetBlue Airways president and CEO Dave Barger said: "Pratt & Whitney has done an outstanding job developing an engine for the Airbus A320neo; we are confident we’ve made an excellent choice for our aircraft.

"The PurePower Engines are an investment in our fleet, our environment and our people that will maximise performance and efficiency, while minimising our carbon footprint."

The PurePower engine, which uses an advanced gear system, will allow the engine’s fan to operate at a different speed than the low-pressure compressor and turbine.

Pratt & Whitney said the combination of the gear system and a new advanced core delivers fuel efficiency and environmental benefits.

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Delivery of the engines is scheduled to start in 2018.

All of the JetBlue Airbus A320neo family aircraft will be powered by a pair of PurePower PW1100G-JM engines, which are expected to offer benefits that include double-digit reductions in fuel burn, environmental emissions, engine noise and operating costs.

Pratt & Whitney Commercial Engines & Global Services president Todd Kallman said: "We are thrilled that JetBlue is the first US airline to select the environmentally-friendly PurePower engine for its A320neo aircraft family."

JetBlue Airways had finalised a firm order with Airbus for 40 medium-haul, single-aisle A320neo jets in October 2011 but had not announced its engine selection for the aircraft.

In addition, the company had also converted 30 of its pre-existing orders for A320s to the larger A321 model with enhanced wing-tip devices called Sharklets.