By Linda Silaen

JAKARTA--AirAsia (5099.KU) Chief Executive Tony Fernandes on Tuesday confirmed his company is nearing a deal for the purchase of 100 new Airbus (ABI.YY) jets.

"We're getting closer to an order for 100 aircraft. It's not there yet," he told reporters on the sidelines of a business meeting. "We certainly feel that we need the aircraft."

AirAsia is the largest low-cost carrier by fleet size. Last year it placed orders to buy 200 jets from Airbus, a division of the European Aeronautic Defence & Space Co. NV (EAD.FR).

The move was part of an expansion drive by regional budget airlines, who are betting on steady growth in air traffic in Southeast Asia, where a population of about 600 million remains underserved by air links.

Linda Silaen at linda.silaen@dowjones.com

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