China Eastern Airlines said it has signed an agreement to buy 30 new Airbus A320 aircraft in a deal worth about 13.9 billion yuan.

The 30 aircraft are to be delivered between May 2008 and November 2010.

The company said in a statement to the Shanghai Stock Exchange that the new aircraft will be used to meet rising demand for short- to middle-range domestic routes.

"The company also believes that [its] acquisition of the aircraft will further improve its aviation network and enhance [its] competitiveness in this market segment," it added.