Bank of China's Singapore-based aviation leasing arm has placed an order for 20 Airbus A320 aircraft, including some that were previously ordered by a carrier that failed.

The Airbus orders were largely those taken over from an existing order for Airbus aircraft placed by Skybus Airlines Inc., a low-cost U.S. carrier that shut its operations in April.

"The 20 aircraft orders with Airbus comprise 17 orders that were previously placed by Skybus, and 3 options that BOC Aviation exercised," Elsie Ng, BOC Aviation's head of business development & corporate communications, told Reuters in an email.

Airbus' A320 family aircraft catalogue prices range between US$73.2 million and US$80.6 million, according to the company's website which would make the deal worth around US$1.6 billion.

But planes are usually sold at a deep discount to catalogue prices.

"BOC Aviation, that's Bank of China's leasing, has just used the occasion of the Zhuhai airshow to place an order with us for 20 A320 family aircraft," Airbus sales chief John Leahy said on the sidelines of China's largest aerospace show.

"As BOC Aviation had entered into a purchase and leaseback deal with Skybus, we took over the orders with the consent of Airbus and Skybus after the latter filed for bankruptcy," BOC Aviation's Ng said.

Some analysts said the move reflected bleak prospects in the Asian aviation sector as the economic downturn deepens.

"There has been overcapacity among American airlines since the beginning of the year, and they are downsizing their fleets by selling or leasing out some of their planes. Some of the Asian avaiation companies have started to cancel orders," said Kelvin Lau, an aviation analyst with Daiwa Institute of Research.

BOC Aviation, the largest Asia-based aircraft leasing company, now has orders for a total of 98 single-aisle aircraft from Airbus, of which 58 had been delivered.

"Our latest orders reflect ongoing demand for lease aircraft from the A320 family at both full service and the low cost airlines around the world," Robert Martin, managing director and chief executive officer of BOC Aviation.

Airbus said last month that it suspended plans to increase its passenger jet production due to the global financial crisis.