The deal covers the purchase of five next-generation 737s under capital lease agreements and the leasing of five more on an operational lease basis. The planes will be delivered between September 2005 and September 2006. The contract conditions and financing package are expected to be confirmed by the RJ board by 30 August, although the details of which models are to be acquired and their specifications are still being negotiated.

RJ president Samer Majali said the airline considered offers from Boeing and its European rival Airbus. RJ will use the 737s to replace its older Airbus 310s and 320s currently operating on its short- and medium-haul flights to the Middle East, North Africa and Europe.

Since 2002, RJ has modernised its long-haul fleet with the purchase of four new Airbus 340s. The 17-strong RJ fleet consists of four Airbus 340s, six Airbus 320s and seven Airbus 310s, two of which are cargo freighters.

Amman is seeking to improve RJ's competitiveness as part of long-running plans to privatise the carrier.