AirAsia X will buy 150 Canadian-made Airbus A220 aircraft, a multibillion-dollar sale for the European planemaker that will provide a boost for its manufacturing site in Quebec.

Tony Fernandes, co-founder of the Southeast Asian budget carrier, signed the agreement at the Airbus Canada factory in Mirabel, Quebec, where the plane is made.

The AirAsia deal is for A220-300s, which seat up to 160 passengers. Airlines typically receive substantial discounts for large transactions. The deal also includes an option for 150 additional aircraft of a higher-capacity variant of over 180 seats, the A220-500, which has yet to enter production, Fernandes said in an interview.