On October 31, Shanghai Airline signed a contract with aircraft giant Airbus on the purchase of five Airbus A321 planes at Air show China 2006 in Zhuhai, in Guangdong Province, south China.

The contract marks the introduction of Airbus aircraft in the airline.

The purchase was included in a framework agreement signed by China Aviation Supplies Import and Export Group Corp. and Airbus in December 2005 on purchasing 150 Airbus A320 aircraft. The deal was valued 9.5 billion U.S. dollars at list prices.

The airline's chairman of board of directors Zhou Chi said the introduction of Airbus A321 was based on the company's strategic development needs.

The Shanghai-based airline had developed fast and steadily over the past two decades. The single-aisle A320s would allow it to expand bases, increase domestic capacity and carry more passengers, said Zhou.

Founded in 1985, Shanghai Airline has a 48-strong fleet and operates 150 passenger and cargo routes to domestic and overseas destinations. It owns 80 percent of China United Airlines.

By the end of September, 249 Airbus A320 planes were operated by 10 Chinese airlines, including four private companies.