PARIS/AMSTERDAM, July 12 (Reuters) - Air France-KLM (AIRF.PA) has launched a tender to "renew and extend" the medium-haul fleets of Dutch unit KLM and the French and Dutch arms of low-cost subsidiary Transavia, a spokesperson for the Franco-Dutch airlines group said on Monday. The company confirmed the tender after Chief Executive Officer Ben Smith was quoted as saying Air France-KLM had approached Airbus (AIR.PA) and Boeing (BA.N) about 160 jets. "We"ve done a little bit in this area, it"s been on the agenda since 2004, but it"s never been put in place as it is now. I am very pleased to be able to put together this order, the largest in the group"s history," he told the daily Het Financieele Dagblad in an interview. A competition for medium-haul jets would typically pit the Airbus A321neo family against the Boeing 737 MAX, although Air France has also ordered the smaller Canadian-designed A220 jet for its French operation. Smith said in the interview that the Air France-KLM combination had slipped behind competitors Lufthansa (LHAG.DE) of Germany and Anglo-Spanish IAG (ICAG.L), which owns British Airways, Iberia and Aer Lingus. Air France-KLM should strengthen cooperation to be able to respond more quickly to market developments, he said, without specifying which business segments. "In 2004, Air France-KLM was the largest group in Europe, now we are number three. They have worked more effectively. Obviously we can do that too, but we need to move forward a little faster."