Air France-KLM Group's low-cost operator Transavia is ordering up to 20 Boeing 737-800s.
The company has disclosed that the agreement comprises 17 firm and three optioned aircraft.
All 737-800s are fitted with CFM International CFM56 powerplants.
Delivery of the jets will start in January 2016 and continue to 2018, says Air France-KLM Group.
They will support the growth of Transavia's French division and the development of its Dutch operation.
Air France-KLM had been intending to expand Transavia's reach across Europe but the plan has been reined-in following an industrial dispute last year.
"Our leisure activity is growing rapidly and is a major driver for the group," says Air France-KLM chief Alexandre de Juniac.
Transavia operates from six bases in France and the Netherlands with a fleet of 45 aircraft, exclusively 737s.
Boeing says that the order, worth $1.6 billion at catalogue prices, was already included on its books, attributed to an undisclosed customer.
Source: Cirium Dashboard
