(Yicai Global) July 4 -- China’s largest flight operators, including China Southern and China Eastern Airlines, as well as Air China, will buy 292 Airbus-made A320neo jets worth USD37.3 billion, the biggest plane order ever for the three.

The sum and the volume of aircraft are record high for the three state-backed companies, Yicai Global learned from their management. The deal is also the first big passenger plane order in China's aviation sector over the past three years, marking expected tourism recovery after the Covid-19 pandemic is contained.

The volume of 292 planes equals the annual sum of aircraft bought by the entire Chinese aviation industry before the Covid-19 pandemic, Lin Zhijie, an insider in the civil aviation sector, said to Yicai Global. But the big number still cannot satisfy Chinese airlines’ demand in the next few years as they need to buy more jets, he added.

The purchases are the result of long-term collaboration and negotiations with the European plane manufacturer, according to the firms' executives.

The deal fills the gap as old planes are withdrawn, but also prepares airlines to seize post-pandemic market opportunities, Lin said. Placing orders at this time reflects on the carriers' expectations of the resumption of the civil aviation market and the growth potential of China, the world's largest market for civil aircraft, he added.

The additions are forward-looking as China's tourism sector has not yet returned to pre-pandemic levels. The nearly 300 planes in the A320 family of narrow-body airliners will be delivered between 2023 and 2027, according to the three companies' announcements. Air China and Guangzhou-based China Southern said the prices were comparatively favorable.

The new purchases will replace some existing fleet, said Air China. But if not factoring in the removal of old equipment, the addition will increase the flag carrier's fleet by 10 percent, it added.

Shanghai-based China Eastern said the 100 A320neo jets it expects to receive will replace old aircraft with expiring leases. Some 68 A320 jets are predicted to be removed, it added.

Editors: Liao Shumin, Emmi Laine, Xiao Yi