(Reuters) - China's Xiamen Airlines has signed a memorandum of understanding (MOU) to buy up to 30 Boeing (>> Boeing Co) 737 MAX 200 airplanes worth $3.39 billion (£2.6 billion) at list prices, the U.S. planemaker said on Monday.

The China Southern Airlines (>> China Southern Airlines Co Ltd) subsidiary plans to use the aircraft for its low-cost units in mainland China, Boeing said.

The deal is subject to approval of Xiamen Airlines and China Southern boards and the Chinese government, it said.

Separately, the airline signed a $980 million deal with CFM International for engines for the planes. 

CFM International is a joint venture between the aerospace arm of General Electric (>> General Electric Company) and Snecma, a subsidiary of French firm Safran (>> SAFRAN).

The 737 MAX 200 is based on the 737 MAX 8, which itself is the re-engined and upgraded variant of the popular Boeing 737.

The MAX 200 variant can seat up to 200 passengers, 11 more than the usual low-cost airline configuration, allowing carriers to reduce their operating costs and increase revenue.

Xiamen Airlines operates an all-Boeing fleet of more than 140 aircraft including six 787s, 130 current generation 737s and four 757s. It plans to expand its fleet to 200 aircraft by the end of the decade.

(Reporting by Siva Govindasamy in Singapore; editing by Jason Neely)