Regional Chinese carrier Shanghai Airlines has said it planned to buy five Airbus 321 planes. It also wants to sell four old Boeing B757 planes and rent them back.

The purchase is to expand its fleet, cut operating costs, widen its aviation network and increase its market competitiveness.

The actual total cost will be lower than the list price of $370 million. The planes are part of a 150-plane deal previously announced by the Chinese government. Deliveries will be between 2011 and 2012.

Shanghai Airlines will sell four of its old Boeing 757 planes for $66 million to US-based aircraft leasing company, Aircastle.