Qantas has finalised a deal with Airbus worth $9.5bn for 110 A320 Family aircraft, comprising 78 A320neo and 32 A320s, to expand its fleet in Asia.

The A320neo is a fuel efficient aircraft which burns 15% less fuel compared with the original A320, and it will enter service in 2015.

The aircraft incorporates latest generation engines and large Sharklet wing tip devices, which together will deliver 15% CO2 emission savings.

According to Airbus, the Qantas Group will deploy the new aircraft on short to medium haul domestic and international operations.