Malaysia's AirAsia extends Airbus deal to 300 planes: source

Features Reuters

KUALA LUMPUR (Reuters) - Malaysian budget airline AirAsia Bhd will extend a deal with Airbus for its new A320neo jets to 300 planes, a source familiar with the matter said.

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The two sides had announced a deal for 200 planes at the Paris Air show last month, shattering aviation records, but the additional order takes the list price of the contract to a staggering $27 billion.

Like the previous order, the fresh 100 planes would also carry CFM International engines, the source said.

The source, who spoke to Reuters on condition of anonymity, said AirAsia would receive a discount for the entire order, but did not give further details.

Deliveries of the latest batch of the A320neo planes will be at the discretion of AirAsia, the source added.

The initial order of 200 planes will be delivered from 2016.

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(Reporting by Y-Sing Liau and Raju Gopalakrishnan; Editing by Vinu Pilakkott)