Pegasus, Turkey's second largest airline, previously had operated mostly Boeing Co. 737 aircraft, which compete against Airbus' A320s.
The deal includes a firm order for 58 A320neos, 17 A321neos and options for another 25 jets from the A320neo family. If Pegasus exercises those options, the entire order is valued at $12 billion at list prices. Jet makers like Airbus and Boeing typically discount from list prices.
“It is with great pride that we are placing the biggest order in the history of Turkish civil aviation with Airbus for up to 100 A320neo Family aircraft,” Ali Sabanci, chairman of Pegasus, said in a statement.
Deliveries will begin in three years and run through 2022, said Chris Buckley, the manufacturer's executive vice president for Europe, Asia and the Pacific.
The order increases Airbus's backlog of A320neo single- aisle aircraft to 1,654 since sales began two years ago. Deliveries of the model are planned to begin in 2015.
Boeing launched its updated 737 MAX in the summer of 2011 to compete against Airbus' refreshed A320. The Chicago-based aerospace company has won more than 1,000 orders in 2012 for the 737 family.