Air China, the national carrier, will buy 20 Airbus A330-200s to serve its major international and domestic routes, airline spokesperson Wang Yongsheng confirmed on Thursday.

Although Wang did not elaborate on the deal, a statement issued on the website of the Hong Kong Stock Exchange -- where the company is listed -- said the airline will pay less than the catalogue price of US$2.86 billion, but did not give the exact amount.

The new planes will fly to the airline's major international destinations in Europe, Australia, North America and certain key domestic destinations such as Lhasa, Air China said.

The deal, approved by its parent firm China National Aviation Holding Co, will be funded through cash from the company's operations and commercial bank loans, said the airline.

The aircraft will be delivered between the middle of next year and the end of 2008, the airline said.

The nation's biggest airline was listed in Hong Kong and London last month to attract more capital to serve its international ambitions.

But officials at the Beijing office of Airbus, controlled by European aerospace giant EADS, remained tightlipped about the deal.

China Southern Airlines is also expected to sign an agreement in Paris Friday to buy five 555-seat A380s, and according to a Bloomberg report, the massive transaction will be worth US$1.4 billion.

The airlines' fleet expansion is a reflection of the robust growth taking place in the civil aviation sector.

Last year was a good one for the industry, with total profits of 8.69 billion yuan (US$ 1.04 billion), according to the Civil Aviation Administration of China (CAAC). These profits equaled the sector's cumulative profits over the previous decade.

According to the CAAC, passenger transport turnover totaled 120 million last year, a year-on-year increase of 38 percent. Cargo and mail transport volume was 2.7 million tons, up 23.3 percent.

(China Daily January 28, 2005)