TAM Airlines has signed a memorandum of understanding (MoU) with Airbus for 32 eco-efficient Airbus A320 aircraft, making it the first A320neo customer in Latin America.

As per the MoU, TAM has placed orders for 22 A320neo and ten other A320 family aircraft to reduce costs and improve its environmental performance.

The A320neo incorporates new efficient engines and large wing tip devices called Sharklets, which deliver 15% fuel savings, as well as a reduction in NOx emissions and engine noise.

The company has not yet decided on the engine for the aircraft.

TAM chief operating officer John Leahy said the aircraft would enable the airline to take full advantage of Brazil’s expected growth in air travel, especially during the upcoming World Cup and Olympic Games.