Malaysia-based budget carrier Airasia is to buy 100 A321neo aircraft from Airbus to boost its burgeoning fleet, the European aircraft manufacturer said.

"The contract marks the first order placed by AirAsia for the largest model in the best-selling A320 Family," Airbus said in a statement late Tuesday.

"Seating up to 240 passengers in a single class layout, the A321neo will enable the airline to increase capacity while benefitting from the lowest operating costs in the single aisle category," it added.

The contract brought to 575 the total number of A320 family aircraft ordered by the Malaysian discount carrier, 188 of which are already in the fleet.

AirAsia Group chief executive officer Tony Fernandes said the purchase of A321neo aircraft will help Asia's biggest budget carrier cope up with strong demand and "reduce our cost per available seat kilometre."

"The A321neo will be operated on our most popular routes and especially at airports with infrastructure constraints," he was quoted by Airbus as saying.

"It will allow us to bring higher passenger volumes with the same slots, therefore providing immediate benefits to the airports," Fernandes added.

AirAsia Group currently operates close to 1,000 flights per day to more than 120 destinations in 24 countries.

- dpa