(Yicai Global) July 12 -- Air China will buy 20 Airbus A350-900 airplanes for a basic price of about USD6.5 billion.

The purchase will increase the Beijing-based carrier's transport capacity by around 9.7 percent, it announced in a statement yesterday.

The company's shares [EPA:AIR] closed 0.11 percent up at EUR125.98 (USD142).  

The company and its wholly owned subsidiary Air China Import and Export penned the purchase contract with Leiden, the Netherlands-based Airbus yesterday, the statement said, adding the planes will be delivered in batches between 2020 and 2022.

The amount actually paid will be less than the basic price as Airbus will offer a large discount with a credit note -- an enforceable pledge to reduce the final price paid -- per the statement.

The deal will help Air China optimize its fleet structure, supplement capacity, improve operational cost-effectiveness, and provide a more comfortable passenger service, the statement added.

Airbus delivered the mainland's first A350 series to Air China in Toulouse, France on Aug. 8.

Editor: Ben Armour