The Chinese carrier, the world's biggest airline by market value, said it would buy the aircraft with a total list price of about $1.54 billion, though actual prices are typically lower.

The deal will increase its fleet capacity by 1.3 billion tonne kilometres and allow it to increase the frequency of flights on a number of international routes, the carrier said, without giving further details.

The chairman of Air China said earlier that it was likely to issue a total of 10 billion yuan ($1.5 billion) worth of bonds this year as it seeks to expand its fleet size.

Air China aims increase its fleet size to more than 700 jets by 2015. The carrier and its subsidiaries, including Shandong Airlines, currently have around 430.