Airbus orders confirmed by IAG

<p>AIG has confirmed a raft of new orders for the Airbus A320.</p>

International Airlines Group (IAG) has confirmed it has made orders for up to 220 Airbus A320 aircraft.

Many of the planes will be for its Spanish airline Vueling, with 62 of the firm orders and 58 of the options being used for this firm.

IAG, which also owns British Airways and Iberia, confirmed it has done a deal below the list price of $5.4 billion (£3.5 billion) for the planes.

"Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity," said IAG chief executive Willie Walsh.

However, the deal is dependent on it getting the green light from IAG's shareholders.

IAG explained that the order will enable Vueling to "replace some of its existing A320 fleet and expand its business", with the planes set to arrive between 2015 and 2020.

The share price of IAG is slightly down in the early hours of trading this morning (August 15th). At 08:39 BST, its stocks were trading 0.73 per cent lower than at the start of the session.

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