Malaysia's AirAsia said this week it will order 30 new A320 passenger jets to meet expanding operations, bringing Asia's most profitable airline's Airbus fleet to 130.

AirAsia's chief executive officer Tony Fernandes said the option for 30 additional A320s was subject to board approval with a decision expected next week.

"The management is recommending to the board a further 30 option," Fernandes told reporters in a conference call.

Airbus said that AirAsia had confirmed an order for 40 single-aisle A320 planes in a deal worth US$2.7 billion.

The carrier said this week it expects to fly to China and India in early 2007. It will also take up 99 domestic routes from Malaysia Airlines under a government route rationalisation plan effective from August 1.

AirAsia has been planning its major expansion plan on the wings of 100 Airbus A320 planes, including the latest confirmed order of 40.