Airbus will overhaul its A320 jet to offer 15% more fuel efficiency.

Airbus will spend more than 1 billion euros ($1.3 billion) on the "A320neo" project, which will improve efficiency and reduce emissions, Reuters said.

The new plane will have upward-slanting wingtips and use engines from either Pratt& Whitney or CFM International. The company says it could sell as many as 4,000 of the planes over the next 15 years.

Airbus is struggling to hold on to its market share amid growing competition from companies such as Bombardier (BBD.D). Previously, Airbus had resisted changing its popular A320 design.

"This is not really a huge investment from Airbus. We are going to be spending a little over a billion euros on this program. We are not redesigning the A320," sales chief John Leahy said.




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