Xiamen Airlines, in which China Southern Airlines holds a 60 percent stake, agreed to buy six B737-800 aircraft, which will be delivered in 2010, the parent company said in a statement.

Southern Airlines agreed to buy six B777F cargo planes, to be delivered between November 2008 and July 2010, it said.

The deal for the 12 Boeing planes is worth up to US$1.84 billion (euro1.47 billion) at list prices, but the actual purchase price is lower than this amount, China Southern Airlines said without giving further details.

The company also said the two airlines will use bank loans and operating funds to finance the deal.

China Southern Airlines, based in the southern city of Guangzhou, is one of the country's three major state-owned airlines, along with de facto flag carrier Air China Ltd. and Shanghai-based China Eastern Airlines Corp.