Air Asia raises Airbus A320 order

The A320 is the second best-selling plane of all time

Malaysian airline Air Asia has boosted the size of its fleet, ordering 100 more A320 planes from Airbus.

The group has also taken out an option for a further 30 planes as it prepares for the launch of a joint venture for budget long-haul flights, Air Asia X.

Air Asia declined to give details of the deal, but at catalogue prices it would be worth more than $6bn (£3bn).

The deal doubles an order the group placed with European planemaker Airbus last month for 100 of the A320s.

The small planes are used for short- and medium-haul flights, and are expected to be delivered after 2012.

Air Asia currently has a fleet of 50 aircraft, comprising 15 A320s and 35 Boeing 737-300s.

Earlier this month, the group said it was launching a no-frills long-haul service in partnership with Fly Asian Express, the carrier that is majority owned by Air Asia chief Tony Fernandes.