Aer Lingus has confirmed an order for 12 Airbus long-haul aircraft valued at €1.598 billion ($2.33 billion).
The company, which aims to reduce the age of its fleet, also said it has an option to purchase up to six additional A350-800XWB aircraft or A350-900XWB aircraft.
Aer Lingus said it has obtained "certain price concessions" from Airbus and will pay a reduced amount for the aircraft which, at list prices, cost €709 million ($1.04 billion) and €873 million ($1.28 billion) respectively.
The company said the planes are scheduled for delivery between 2009 and 2016. The airline said it would look into a variety of financing options closer to the first delivery date in 2009.
Aer Lingus said it "intends to retain flexibility" in determining the method of financing and may use bank debt, operating leases or finance leases to fund the deal. The airline confirmed it has the ability to fund a "significant portion" of the aircraft order through its own cash reserves, however.
The agreement with Airbus is conditional upon the approval by an ordinary resolution of the company at an extraordinary general meeting of shareholders, the date of which will be announced soon, Aer Lingus said.
"We are pleased to announce agreement on the terms of purchase of these 12 new long haul aircraft which are key to our growth ambitions. The aircraft will complement our existing Airbus fleet and enhance our long haul network whilst offering a superior product to customers," Dermot Mannion, Aer Lingus' chief executive said in a statement.