China Southern Airlines has signed a 26.5-billion-yuan (3.3 billion U.S. dollars) deal with European aircraft giant Airbus to buy 50 Airbus A320 planes.

The deal was signed on Thursday, China Business News reported on Friday, quoting a source from the airline, one of China's three key carriers.

The source said the actual value of the contract was lower than the catalogue price. But he refused to elaborate.

The planes will be delivered between 2009 and 2010.

The move follows other major airlines' purchase of planes from the aircraft manufacturer.

China Eastern Airlines signed a contract with Airbus for buying 30 Airbus A320 planes on June 27.

On June 15, Air China, the national carrier, inked a 1.744-billion-U.S. dollar deal with Airbus for buying 24 Airbus A320 planes.

Industrial sources explained Chinese airlines hoped to reduce operational costs by increasing passenger capacity in a bid to tackle the pressure exerted by soaring oil prices.

The A320, a medium-range, single-aisle twin-engine jet, is capable of carrying up to about 180 passengers.

Source: Xinhua