Budget Airline, Easyjet has revealed a deal to purchase 135 new planes from Airbus, in a deal that could cost the carrier in excess of $11bn (£7bn).

The new additions to the fleet will consist of 35 A320 aircraft and 100 new-generation A320neo jets.

Eighty-five of the planes are part of an initiative to replace ageing models, while the remaining will be at the forefront of Easyjet’s ambition to grow seat capacity by 3-5% per year.

The deal also contains an option for Easyjet to buy an additional 100 A320neo jets in the future.

The A320 aircraft, which is powered by more fuel-efficient engines which Easyjet anticipates, will reduce costs for each seat by 11-12%, will start to be delivered from 2015, while the new-generation jets should come into service between 2017 and 2022.

The carrier has 211 aircraft at present and the deal is subject to shareholder approval at a meeting on July 11th.

Article extracted from The Guardian and BBC