Yemen's national airline Yemenia has signed an initial agreement with Airbus to buy 10 A320 aircraft worth USD$700 million.

The deal is subject to approval by the board of Yemenia, they said in a statement, adding the memorandum of understanding stipulates delivery of the first aircraft by 2011.

Yemenia would use the aircraft to expand routes to Africa, India and Europe in additional to regional routes.

In 2007, Yemenia placed an order for 10 next-generation Airbus wide-body aircraft, worth USD$2 billion at list prices to jump start what it said were ambitious growth plans.