China's Hainan Airlines Group is planning to buy shares in Europe's Malev Hungarian Airlines, Securities Daily reported on Tuesday, citing Chen Feng, vice president of the group.

Hainan Airlines Group Vice-President Chen Feng told the newspaper the decision has not yet been made about whether the deal would be considered an investment or a joint venture. Hainan Airlines Group is the parent company of Hainan Airlines Co Ltd, China's fourth-largest air carrier.

Malev Hungarian Airlines is a government-owned enterprise with 24 carriers, including 19 Boeing 737 airplanes, that serves 36 countries.

Li Xuerong, an analyst with CI Consulting, said the investment is good for Hainan Airlines' future overseas expansion plans, and will be the airline company's first move into the European market.

Industry insiders said the deal might be an outcome of a China-Hungary cooperation agreement signed recently. China wants to construct a transportation and logistics hub in Europe, the newspaper reported.