Qantas is planning to buy 110 aircraft from Airbus for $9bn to salvage its loss-making international business.
The order includes 106 firm orders and 78 A320neo jets, making Qantas the latest airline to select the world's best-selling single-aisle aircraft.
Qantas is reviewing its offshore operations to cut costs and unprofitable routes and planning to launch a premium Asian airline as well as a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi.
The company said the new premium airline is expected to be launched next year with an initial fleet size of 11 A320s.
The A320neo series aircraft incorporates the latest-generation engines and large Sharklet wing tip devices, is a new engine option for the A320 Family to enter service in 2015.
Qantas has decided to accept deliveries of the last six of its 20 A380s in parallel with this new order to the airline's new business plan, which will affect deliveries after 2013.
