IAG has secured firm orders and options for up to 220 Airbus A320s.

Up to 120 of those will be for Vueling, allowing the airline to replace some of its existing A320 fleet and expand its business. The Vueling agreement comprises 62 firm orders (30 A320ceo and 32 A320neo) and 58 options. The firm orders will be delivered to Vueling between 2015 and 2020.

In addition, IAG has secured 100 A320neo options, which could be used for any of the airlines in the group

IAG chief executive, Willie Walsh, said: “Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity. These new aircraft will enable Vueling to continue that expansion and replace some of its older fleet with modern, fuel efficient aircraft, leading to further unit cost reductions.

“The benefits that the merger brings to all our airlines are highlighted once again. In addition to the Vueling order, we have also been able to secure a further 100 A320neo options for all the airlines in the Group”.

The Vueling firm orders are subject to approval by IAG’s shareholders.