Toulouse - The Greek airline Aegean Airlines will extend and renew its fleet. A preliminary agreement was signed with the European manufacturer to order 30 A320neo family aircraft with options for another 12.

Following a call for tenders, Aegean Airlines announced on 28 March 2018 the signing of a Memorandum of Understanding (MoU) with Airbus to order up to 42 A320neo.

The order is valued at $5 billion at list prices and presented as "the largest private investment made in Greece." According to the agreement, Aegean will receive 20 A320neo and 10 A321neo over the years.

The company will have the opportunity to increase the number of A321neo by converting A320neo. Aegean hopes to finalize the purchase agreement with Airbus in June 2018. The Greek carrier has also begun negotiations with engine manufacturers Pratt & Whitney and CFM International to decide on the engines by July 2018.

Airbus has confirmed the signing of the Memorandum of Understanding for the 20 A321neo and 10 A321neo, without mentioning the options.

The Athens-based airline now operates a fleet of 46 Airbus aircraft, including 37 A320, 8 A321, and an A319. The agreement with Airbus is part of the fleet expansion and renewal plan, which is expected to take place between 2020 and 2025.

Today marks the beginning of a new period of growth and development for Aegean,
the company's vice president Eichios Vassilakis said in a statement.

Aegean expects the A320neo to deliver a 15% reduction in fuel consumption, and an additional 600 to 1,500km range, which should allow for longer flights to reach more distant destinations.

Earlier this month, the airline reported a good start to the year with passenger traffic growth of 12% in January and February 2018.