HONG KONG - Air China Ltd said it had agreed to buy 15 787-9 aircraft from Boeing for a total basic price of $3.19 billion (S$4.3 billion) to expand fleet capacity.

In a filing to the Hong Kong bourse late on Tuesday, Air China said the new aircraft would replace 15 787-8 aircraft it agreed to buy in 2005 as Boeing had delayed delivery.

The deal will increase Air China's fleet capacity by about 11 per cent based on available tonne kilometers of the company as of the end of 2009, it said.

The aircraft basic price comprises the airframe, optional features and engines, and the deal will be funded through cash generated from the company's business operations and commercial bank loans, Air China added.