China's flag carrier, Air China, has set an agreement with Boeing Co. to buy seven new 737-700 next generation aircraft, Boeing announced late Wednesday.

The purchase will raise the number of Boeing jets in state-run Air China's fleet to 139, Boeing said in a statement.

The aircraft order was valued at about $360 million, and will be delivered beginning in November 2005. Air China will use the airplanes on its domestic routes.

Beijing-based Air China is the country's biggest airline.

(Xinhua News Agency September 2, 2004)