The company is negotiating to sell 430 A320neo single-aisle planes valued at more than $40 billion to USA investor Indigo Partners, people familiar with the matter said.
The stunning magnitude of the deal - which Airbus called its "largest single commercial announcement ever" - caught many in the aviation industry by surprise.
The airline had announced orders for 288 planes as of the end of October.
A spokesman for Airbus declined to comment, as did Indigo says Bloomberg.
Private equity firm Indigo Partners has signed a memorandum of understanding for 430 Airbus A320neo family aircraft at the Dubai air show.
Even with a massive haul from Indigo, Airbus may not be done at the Dubai event.
Airline pioneer Bill Franke placed a historic order for 430 Airbus A320neo-family jets on Wednesday, doubling down on investments in ultra-low cost airlines that offer bargain ticket prices coupled with a slate of extra fees. The aircraft will go to airlines in Indigo's investment portfolio: Frontier Airlines, Mexico's Volaris, European carrier Wizz Air Holdings Plc and upstart JetSmart, which began operating this year in Chile. An order of 20 jets would be valued at US$8.7 billion while an order for 36 of the aircraft would be worth $15.7bn at list prices before discount. "We are hopeful it will become a firm order in the coming weeks", said long-time Airbus sales chief John Leahy who is set to retire from the company.
The deal with Airbus takes Indigo Partner's orders with the plane manufacturer to over 900 aircraft.