China Southern Airlines Co. (1055.HK) said Tuesday it has agreed to buy 10 aircraft from Boeing Co. (BA) with a combined catalogue price of US$2.98 billion, as it expands its capacity to meet growing demand for air travel in China.

The Guangzhou -based carrier said in a statement that the 10 Boeing 777-300ER planes will be delivered in stages from 2013 to 2016.

China Southern said it will mainly use internal resources and bank loans to finance the purchases.

Once all the aircraft have been delivered, the airline's available ton kilometers--a measure of capacity--will increase by 7.9% from the end of December 2011, it said.

-By Joanne Chiu, Dow Jones Newswires; 852-2802-7002; joanne.chiu@dowjones.com

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