Aer Arann has signed a deal to take delivery of 10 new 72-seater ATR72-500 series aircraft over the next three years in a deal worth over $180 million (€140.4 million).
The deal is the single largest aircraft investment by a private Irish passenger airline and the third largest in Irish aviation history.
The purchase of new aircraft will allow Aer Arann, which operates over 600 flights per week across 35 routes, to replace and supplement its existing fleet and will bring to 20 the number of aircraft in its fleet by the end of 2009.
The airline will take delivery of two aircraft in 2007, five in 2008 and three in 2009.
Padraig Ó Ceidigh, managing director at Aer Arann, said: "This expansion will enable us to develop our network further into the UK and mainland Europe and double the size of the airline over the next three years."
Aer Arann is one of the fastest-growing regional airlines in Europe, with a turnover in excess of €94 million and projected passenger numbers of 1.2 million for 2006.
The airline opened 12 new routes for summer 2006 including services from Dublin to Inverness and Cardiff, Cork to Angers and Jersey and Galway to Cardiff and Liverpool.