Air China to buy 45 Boeing planes

China - Air China has signed a deal to make one of its biggest purchases with Boeing Company.

China's national airline is reportedly purchasing 15 Boeing 777 and 30 Boeing 737 planes from the U.S aircraft maker. This order will be delivered in stages between 2011 and 2015.

This move will increase China's aircraft's capacity by approximately 35% from its 2007 level, boosting its plans to develop Beijing as a domestic and international air transport hub.

The list price of the aircraft is about US$6.3 billion but Boeing will grant price concessions to Air China in the form of credit memorandum, which in turn can be used towards the delivery invoice for the aircraft or the purchase of other goods and services from Boeing, media reports said.

Air China said the new fleet will be paid for in installments, through company generated revenues, commercial bank loans and other financing instruments.

Air travel is expected to grow in China, fueled by the country's booming economy. In 2007, Air China saw air passenger revenue increase 16.2% to 42.6 billion yuan (US$6.4 billion).