The lessor told a news conference at the Farnborough Airshow that 17 of the 43 planes would be a larger A321 version.

The first eight A320ceo aircraft will be powered by IAE engines, with decisions for the rest of the fleet to follow, Airbus said. IAE is part-owned by United Technologies Corp.

BOC Aviation Chief Executive Robert Martin added that Airbus was right to launch a revamped, more fuel-efficient version of its wide-body A330 aircraft, unveiled at the air show on Monday.

"The time is right to launch the A330neo. If it should come to market it should come to market quickly," he said, citing demand for travel between cities in India and China.

(Reporting by Victoria Bryan and Cyril Altmeyer; editing by Tom Pfeiffer)