China Southern Airlines signs $1.17bn Airbus deal

European plane maker Airbus Industrie has signed a deal with China Southern Airlines to supply the airline with 21 planes at a cost of around $1.17bn (0.96bn).

China's largest carrier, China Southern airlines, is to buy 15 A320-200 aircraft and six A319-100 aircraft, with deliveries to be made in the next two years.

The purchase will be financed through bank loans, the carrier said in a statement.

The planned aircraft order was first announced in late January during Chinese President Hu Jintao's state visit to France, where he also toured Airbus headquarters in Toulouse.

Airbus now has around a 30% slice of the aircraft market in China and has publicly announced its objective to increase substantially that figure to 50% by fulfilling China's need for aircraft over the next 20 years.