TAM Airlines, Brazil's largest airline has finalized a purchase agreement for 32 eco-efficient Airbus A320 aircraft, comprising of 22 A320neo and 10 A320 Family aircraft, the France-based aircraft maker said Thursday.

"The order follows a Memorandum of Understanding signed last February. Engine selection will be announced by the airline at a later date," Airbus said in a statement.

"Fuel efficient aircraft are key to our fuel conservation program and to our contribution to the industry's CO2 emissions reduction," said Jose Zaidan Maluf, Contracts and Supply Vice President of TAM Airlines.

With nearly 150 Airbus aircraft in operation, TAM has so far ordered over 200 Airbus aircraft, including 27 A350-900s. The air carrier operates aircraft to 43 destinations within Brazil and 18 destinations throughout Europe, the United States and South America.

According to Airbus, over 7,900 A320 Family aircraft have been ordered and more than 4,800 delivered to some 340 customers and operators worldwide.

The A320neo is an update to A320 Family with a new engine option and large "Sharklet" wing tip devices, which together will deliver 15 percent in fuel savings. The fuel-efficient innovation said to save 3,600 tonnes of C02 per aircraft per year will enter into service from 2015.