China (BOC) Aviation has stricken a 340-million-U.S. dollar deal with International Aero Engines (IAE) to purchase its V2500 engines, company sources said.

The engines will be used to power 20 Airbus aircraft of BOC Aviation.

IAE has supplied engines for 46 Airbus A320 aircraft ordered by BOC Aviation, formerly known as Singapore Aircraft Leasing Enterprise (SALE). The company changed its name on July 2 following its acquisition by the Bank of China (BOC).

"V2500 is the fit choice for BOC Aviation's fleet, the youngest in the leasing business," said Jon Beatty, President and Chief Executive Officer of IAE, a multinational aero engine consortium.

The British engine manufacturer Rolls-Royce said in a report on September 19 that Chinese airlines will need 6,600 new engines over the next 20 years, creating a huge market of 65 billion U.S. dollars.