Hungarian low-cost airline Wizz Air has signed a deal with Airbus to buy 110 A321neo aircraft, which would be worth $12.5bn in list price.
Both the sides have signed a memorandum of understanding for delivery of these aircraft with an option to buy 90 more.
Airbus claimed that the order is its single largest for A321 aircraft.
The Budapest-based airline currently operates 61 aircraft, serving 380 routes from 22 bases.
Wizz Air CEO said Jozsef Varadi said: "Thanks to our rapidly growing A320 fleet, we’ve become one of Europe’s leading carriers.
"The A321neo is clearly the leading single aisle aircraft and the best platform regarding operating economics to support our ambitious growth plans."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe aircraft will feature the latest Airbus Cabin Flex configuration, with 239 seats.
Wizz Air is buying the new aircraft to replace its current fleet, which will be returned to the aircraft lessors, while additional aircraft will be used for its future growth.
The single aisle A320neo offers 15% less fuel burn, and the aircraft manufacturer expects to reduce it to 20% by 2020, with cabin innovations, technology advancement in engines, as well overall efficiency improvements.
Varadi added: "We looked at different options for this order but Airbus came in with the best overall mix of aircraft, cost efficiency, support and price, so it made sense for us to continue our long relationship with them as we continue to expand our market reach across and beyond Europe.
"Our operations will continue to see significantly lower costs with these new aircraft, achieved through cabin innovations, the latest engine technology, and efficiency improvements.
Airbus CEO John Leahy said: "Its unbeatable economics combined with its compelling passenger appeal will deliver Wizz Air even better financial returns on their investment."
The A320neo Family aircraft comes in three sizes, A319neo, A320neo and A321neo, with seating capacity between 100 and 240 passengers.
Wizz Air has already ordered 112 A320 aircraft, including 27 high density A321s, which are scheduled for delivery from November.
Image: Wizz Air has already ordered 112 A320 aircraft. Photo courtesy of Airbus
