Airbus Group has agreed to buy US company Emirates for an estimated $3 billion, according to a report in Bloomberg Businessweek.
The deal will be worth $1.4bn after tax and is expected to close in 2018.
The acquisition is expected after the Emirates board meets next week to discuss its future plans.
Emirates will be the fourth major airline to be bought by Airbus, following US Airways, Southwest Airlines and Norwegian.
Airbus, which also operates the world’s biggest airliner, said last month that it was looking for a buyer that could support its ambitious plans to grow its fleet to 30 aircraft by 2020 and increase capacity to 500 aircraft per year.
The company has recently started working on a plan to scale up its fleet of more than 40 aircraft to 1,000 aircraft by 2035, but the acquisition of Emirates will allow it to do so.
Airbus Group will have to sell its remaining assets in the United States.
The new owner will be allowed to sell the remaining shares of its stake in the company in exchange for the shares.
Emirates is currently owned by Chinese airline China National Aircraft Corp. The Chinese carrier, which is also in talks to buy a large portion of Air France-KLM, will now become the sole owner of the US-based airline, Bloomberg reported.