Chinese carrier Shenzhen Airlines is to purchase 10 Airbus A320s, delivery of which is to begin in two years' time.
The agreement comes four months after flag-carrier Air China took a majority shareholding in the operator.
Air China has confirmed the deal. It says that the aircraft will arrive over 2012-13.
"The transaction will expand the fleet capacity of the group," it adds, putting the increase at 2% based on the fleet size at the end of 2009.
It values the agreement at $814 million at list prices but adds that the deal includes concessions.
No engine selection has been disclosed.
Shenzhen Airlines' A320-family fleet is powered by a mix of CFM International CFM56s and International Aero Engines V2500s.