Dubai: Air Austral, the La Reunion-based airline, on Tuesday confirmed an order for two A380s at a list price of $1 billion (Dh3.67 billion).

The all-economy configuration for the two superjumbos will be at a record 840 seats, the highest capacity for passengers on a commercial aircraft. The standard three-class layout of the aircraft seats 525 passengers.

Scheduled for delivery in 2014, the European manufacturer's superjumbo will service the Paris and Saint Denis, La Réunion route.

An engine deal of $240 million for the two aircraft was signed earlier at the 2009 Paris Airshow with Engine Alliance, a joint venture between General Electric and Pratt & Whitney.

The ten-year fleet management agreement includes eight GP7200 engines as well as maintenance, repair and overhaul.

In addition to Air Austral, the GP7200 has been signed to power A380 aircraft for Emirates, Etihad Airways, Air France, Kor-ean Airlines and the International Lease Finance Corp.

The high-density configuration will result in the lowest fuel cost per passenger, the European manufacturer of the superjumbo Airbus said.

Gérard Ethève, president of Air Austral, said that he is convinced of the traffic demands on the route to Paris, especially with their low-cost model.

It currently has nine weekly flights to Paris from its base in Le Reunion, an island in the Indian Ocean. The airline is also in talks with authorities to fly to the French Caribbean islands.

John Leahy, the chief operating officer of Airbus, said that the production of the superjumbo is currently one aircraft per month, and the expected ramp-up will stabilise at two aircraft every month and then move up to three.

"Production problems are relatively minor. The delays are at a few weeks or a month or so at the most," he said.

Currently, 20 A380s are in service with four airlines, while orders for the aircraft stand at 202 from 17 carriers.

Nepal deal signed

Airbus has signed an agreement with Nepal Airlines for an A320 at a list price of $77 million (Dh282.59 million) and an A330, with a list price of $181 million, at the Dubai Air Show. Deliveries are scheduled for 2011.

The new aircraft will be deployed on international services to Japan and will for the first time connect Nepal to Europe with direct flights.

The dual-class A320 will be deployed on regional routes and operate as far as the Middle East as well as to South East Asia, the company said in the a statement.