Taiwan's leading telecom operator Chunghwa Telecom plans to buy a stake in the island's top airline, spurred by expectations of more visits by Chinese tourists, officials said Tuesday.

The plan calls for spending NT$3.5 billion (US$116.4 million) on a 5.74 percent stake in China Airlines, according to a Chunghwa statement.

The deal, approved at a Chunghwa board meeting Monday, will enable the company to obtain 299 million extra shares to be issued by the Taipei-based carrier, the statement said.

With the investment, Chunghwa Telecom will become the third largest single shareholder in China Airlines, which operates a fleet of 68 aircraft and flies to 80 destinations in 28 countries.

"We've long planned to invest in the tourism sector, but it is a domain we're not familiar with," a Chunghwa Telecom official told AFP on condition of anonymity.

The official added that the two companies will sign a memorandum of understanding on a partnership soon.

The investment is motivated by the likelihood of more visits from the mainland as ties with Beijing continue to improve due to policies launched by President Ma Ying-jeou after he was elected in 2008.

Observers expect Ma to adopt further measures to bring the two sides closer following his successful re-election for a final four-year term at the weekend.

Chunghwa Telecom's revenues in 2011 totalled NT$192.46 billion, a rise of 3.25 percent from the previous year.