QANTAS yesterday revealed multi-billion pound plans to expand its Airbus fleet.

The Australian airline committed to buying 106 planes, including 78 A320 neos.

For the first time, Qantas selected Airbus A320 aircraft to launch its new premium airline to service routes to and from Australia and Asia.

In addition, Jetstar has selected the Airbus A320 to continue its growth in the same regions.

The commitment to order a minimum of 106 A320 Family aircraft includes 78 A320neo jets, making Qantas the latest airline to select the world’s best selling single-aisle aircraft.

The wings for all the planes will be produced at Airbus’s huge plant in Deeside.

The decision to go with Airbus for its short to medium-haul operations underpins the Qantas long-term strategy to build up a fleet of the world’s most fuel efficient and reliable aircraft, according to chief executive Alan Joyce.

He said: “We are delighted to be investing in Airbus’s fuel efficient A320 Family, including the new A320neo as part of Qantas’s international transformation plan and Jetstar’s pan-Asian expansion.

“The A320 Family’s outstanding operational efficiency and comfort, paired with its environmental credentials, make it the right choice for Qantas.”

Airbus chief John Leahy added: “Qantas is an exceptionally forward looking and pioneering airline and we are delighted to play such a significant role in the company’s future strategy.

“In a fiercely competitive market this is a great endorsement for our eco-efficient A320neo and A320 aircraft with their unique passenger appeal thanks to their wider cabin.”

The A320neo is a new engine option for the A320 Family to enter service in 2015. It incorporates latest generation engines and large sharklet wing tip devices, which together will deliver 15% in fuel and CO2 emission savings.

In parallel with this new order, Qantas has decided to adapt deliveries of the last six of its 20 A380s to the airline’s new business plan.

This affects deliveries after 2013.

At present, Qantas’s A380 fleet stands at 10, making the carrier the third largest A380 operator.