Air China said on Thursday it will buy 24 A320 series aircraft from Airbus for USD$1.74 billion.

The airline said the price included the cost of optional features and engines, though it did not say if it was based on list prices. Carriers often receive a significant discount from jet manufacturers that is seldom disclosed.

Air China said it intended to fund the deal with cash generated from operations and bank loans.

An Air China spokeswoman added that the jets comprised part of a government-led Airbus package announced last year, involving most of China's major airlines, and did not represent newly placed orders.

Beijing often buys planes en masse for its listed state-owned carriers, which then announce such purchases in individual exchange filings.