The Dubai-based carrier wants a commitment from Airbus, which hasn't sold any A380s in over two years that ensures the viability of the double-decker for the coming decade and half.
Airbus said the deal would be finalised before the end of this year.
Based on the list price of the A320neo, Airbus's best-selling single-aisle jet, the purchase is worth US$49.5 billion before customary discounts.
The umbrella deal is created to supply aircaft to four airlines in which Franke's Indigo Partners investment company has stakes: USA -based Frontier Airlines, Mexico´s Volaris, Chilean carrier JetSmart and Hungary's Wizz. The A320 is the most successful plane model of Airbus which competes with Boeing's 737.
Indigo Partners' managing partner, Bill Franke agreed the deal with Airbus after he flew into the Dubai Air Show earlier Wednesday. The purchase would also mark a crowning achievement for Airbus sales chief John Leahy, who is set to retire after a multi-decade career in which he built an order book for thousands of aircraft and lifted the European planemaker into a duopoly position with its USA rival.
Wednesday's historic deal represents a final grand act for Airbus's chief salesman, John Leahy, who plans to retire from the company once a successor is selected.
Plane make Airbus has agreed a deal with U.S. low-priced airline Indigo Partners for 430 jets.
New Chile-based airline, JetSmart.
"As an owner you look at fuel burn, seat cost, and we are satisfied Airbus meets those requirements", said Franke.