China Southern Airlines, the country's top domestic carrier, could be set to place a 2.4 billion dollar order for 20 of Boeing's new 7E7 jets.


Boeing's new fuel-efficient jets could be deliverd by 2008, when the Olympic Games (news - web sites) will be held in Beijing, the Beijing News reported, citing unnamed sources.


Last month, Chinese aviation authorities reportedly ordered a freeze on new commercial aircraft orders in 2005 in an effort to curb sharp and uncontrolled growth by domestic airlines.


However, airline company executives have shrugged off the new directive saying it would not affect development strategies as the ban only applied to new purchases in 2005 and not deliveries of existing orders.


Liu Shaoyong, a China Southern Airlines manager, was quoted as saying that the company's purchasing plans had already been decided and were not affected.


Boeing is believed to have secured initial agreements with four Chinese airlines for orders of 7E7s for delivery by 2008.


Boeing has so far received 126 orders for 7E7s, with 56 confirmed, leaving it short of its 2004 launch target of some 200. The aircraft is seen as crucial in the company's strategy as it faces up to ever increasing competition from Europe's Airbus.


The Boeing plane will carry around 217 passengers on routes of up to 15,700 kilometers (9,800 miles).


The world's biggest aircraft builder said the plane will use 20 percent less fuel than any similar sized jet while travelling at speeds of around 850 kilometers (530 miles) an hour.