Air China Ltd., the mainland's largest international carrier, agreed to buy 20 Airbus A330 widebody planes with a list price of US$3.82 billion to increase flight frequency from its Beijing base.

The Hong Kong-listed company will pay for the aircraft with cash, bank loans and debt instruments, it said in a statement to the city's stock exchange on June 26. The purchase will increase the fleet capacity by about 16.5 percent, the statement said.

Air China and other Chinese airlines flew more travelers in the first quarter as the nation's economic growth of 10.6 percent boosted demand for business and leisure flights. That, coupled with a rising yuan, helped the airline post a 147 percent gain in profit during the three months.

The new aircrafts will "reinforce Beijing's position as a transportation hub and increase frequency of flights," Air China said in the statement. "The Airbus aircraft will deliver more cost-efficient performance and provide more comfortable services to passengers."

On June 26, Air China closed unchanged at HK$4.16 in Hong Kong trading.

Photograph: Air China's Airbus A332 aircraft (Rego. Number: B-6075) in the special Beijing 2008 Olympic Torch Relay livery was at Beijing Capital International Airport (BCIA) on March 28, 2008. Photo contributed by CARNOC.com message board member.