China Southern Airlines is to take delivery of Embraer 190 aircraft towards the end of this year, following an agreement with a Chinese leasing firm.
CDB Leasing has agreed to acquire up to 20 Embraer 190s under a deal it values at $700 million.
The lessor says that China Southern intends to use the aircraft primarily for services in Xinjiang province, where the carrier has a station at Urumqi.
Its 190s will begin arriving in the second half of 2011, says CDB, making China Southern a new customer for the E-Jet family.
"This transaction is an important measure to support the airline's aviation market expansion in Xinjiang and the economic development of the Xinjiang region," says CDB vice-president Wu Rongyang.
Embraer states that the agreement covers the sale of 10 aircraft. The status of the other 10 aircraft disclosed by CDB is unclear.
The deal follows a co-operation pact between the airframer and the lessor sealed in December 2009.
Under this pact CDB, which is owned by China Development Bank, is providing aircraft financing and leasing services to potential customers of Embraer within China and the broader region.
Embraer had previously valued the co-operation at up to $2.2 billion over a three-year period.