BEIJING - China Aviation Supplies Holding Company (CAS) signed a general terms agreement with Airbus here on Thursday to buy 60 planes from the European aircraft manufacturer.

The order includes 42 single-aisle A320 aircraft and 18 wide-body A330 planes, according to the agreement.

The A320's high reliability and low operational cost has appealed to Chinese airlines, while the A330 offers a solution to airport congestion in large Chinese cities as larger planes can carry more passengers with fewer flights, said Fabrice Bregier, president and chief executive officer of Airbus.

A state-owned company, CAS specializes in aircraft procurement and support services on aviation supplies, with total assets nearing 7 billion yuan ($1.12 billion) at the end of 2011, according to the firm's website.

As of the end of March, there were some 750 A320 aircraft in operation with 14 airlines in China and more than 110 A330 planes in service with six air carriers.