Chinese airline orders 20 Airbus A320 jets

Financially struggling China Eastern Airlines plans to buy 20 Airbus A320 jets following an agreement last week with the European aircraft maker.

The purchase will cost about US$1.45bn (€1.04bn), based on 2008 catalogue prices, Shanghai-based China Eastern said in an announcement to the Hong Kong Stock Exchange.

It said China Eastern, one of China's three big state-owned carriers, gained what it called "fair and reasonable" price concessions in its negotiations with Airbus SAS.

The purchase was made under the assumption that the airline will "have steady and organic growth over the next few years ... when the global economy recovers," it said.

The single-aisle aircraft are meant to meet rising demand for domestic short to medium-range routes.

The A320 family of jets can seat anywhere from 107 to 220 depending on how the plane is configured.

The jets are due to be delivered between 2011-2013.