British Airways and Iberia parent IAG is to order up to 220 Airbus A320-family jets, initially for low-cost carrier Vueling.
The firm part of the order comprises 62 aircraft - including 32 A320neo - plus 58 options.
IAG is also taking another 100 A320neo options for BA, Iberia and Vueling.
No engine selection has been disclosed.
Vueling chief Alex Cruz, through his social media feed, describes the agreement as "great, great news".