Brazilian carrier TAM has signed a memorandum of understanding for 22 Airbus A320neo aircraft, as part of an agreement which also includes 10 baseline A320s.
TAM has not given a powerplant selection for the re-engined aircraft, which is being offered with the CFM International Leap-X or the Pratt & Whitney PW1100G.
The operator becomes only the third airline to commit to a deal for the twinjet.
"Our orderopens a world of possibilities for TAM, thanks to its substantially increased range capability," says TAM chief Libano Barroso.
"Ordering more A320s allows TAM to reduce costs and further improve our environmental performance."
Neither TAM nor Airbus has given a delivery date for the aircraft. The A320neo is intended to be available from 2016.
TAM's current A320-family fleet is powered both by CFM International CFM56s and International Aero Engines V2500s.