KUALA LUMPUR: Malaysian budget carrier AirAsia Bhd said on Thursday that it has signed a $105 million component support agreement for its fleet of Airbus A320neo passenger jets with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M).

The agreement with Air France's maintenance unit was signed in the presence of AirAsia Group CEO Tony Fernandes and Air France CEO Franck Terner.

AirAsia is ultimately scheduled to have 304 A320neo jets.

The contract is valid for 10 years, Fernandes told reporters at the event.

In a separate statement, AFI KLM E&M said it inaugurated its new Kuala Lumpur Materials and Logistics Service Centre for the region on Dec. 1.

Copyright Reuters, 2016