TAM Airlines will be the first airline in Latin America to receive the A320neo aircraft, which Airbus hopes to begin delivering in 2016 and promises will provide fuel savings of 15 percent.       "Our order for industry leading fuel efficient aircraft opens a world of possibilities for TAM, thanks to its substantially increased range capability," TAM Airlines CEO Libano Barroso said in a statement.

The fuel savings allows the medium-haul aircraft to fly another 500 nautical miles or carry an additional two tonnes in payload, according to Airbus.

Airbus commercial director John Leahy said the order "enables TAM to take full advantage of Brazil's expected growth in air travel, especially in light of the upcoming World Cup and Olympic Games, and to do so in the most eco-efficient way possible."

The version of the 10 remaining A320 family aircraft was not specified.

Airbus did not disclose the value of the order but the list price of the 20 A320neos alone is over $2 billion (1.4 billion euros).

Airbus remained the world's biggest planemaker in 2010, delivering 510 planes last year and winning 574 orders worth $84 billion at list prices.