A320--

China Eastern Airlines has agreed to purchase 60 A320s from Airbus for $5.39bn as a part of its strategy to expand its fleet to serve domestic routes.

The carrier will fund the purchase from its working capital, bank loans and other sources.

China Eastern Airlines will use the new A320s to meet the increasing demand for domestic medium and short-haul routes, with the aircraft expected to further strengthen its competitiveness in the domestic civil aviation market.

The new aircraft will be delivered in phases between 2014 and 2017.

The A320 features weight-saving composites, an optimised wing that is 20% more efficient compared to earlier designs, a centralised fault display for easier troubleshooting, fly-by-wire flight control, and offers a 3.5% savings in overall fuel burn.

It can seat between 150-180 passengers in a typical two-class layout.

The Shanghai-based airline has also agreed to sell its eight Bombardier regional jets and ten Embraer jets, valued at CNY1.5bn ($240m), to Airbus.

China Eastern Airlines is expected to hand over the 18 aircraft to the plane maker between 2014 and 2016.

As of October 2012, Airbus has received 5,794 orders for its A320 family airplanes and has delivered 3,129 aircraft, of which 2,984 are in operation.

Image: China Eastern Airlines will deploy the new A320s on medium and short-haul routes. Photo: courtesy of Airbus S.A.S.