HNA Group, the parent of Hainan Airlines Co Ltd<600221><900945>, signed a US$1.2 billion deal with Britain's Rolls-Royce plc in London on Friday, sources reported.

Under the deal, HNA Group will buy aero-engines from Rolls-Royce for Hong Kong Airlines, in which the group is a major shareholder. HNA Group selected the latest Trent 700EP engines for Hong Kong Airlines' new fleet of 20 Airbus A330s. The engine has the feature of improved fuel and lower emission levels, according to Rolls-Royce's statement.

The cooperative deal was signed in the presence of British Business Secretary Peter Mandelson and China's Commerce Minister Chen Deming.

A Chinese trade delegation led by Chen has visited four European countries last month, signing deals worth over US$13 billion.