(Reuters) – China’s Juneyao Group, the parent of Juneyao Airlines, is in talks with planemaker Boeing (BA.N) and Airbus (AIR.PA) about acquiring more than 20 more planes in a deal that may be worth more than $1.8 billion, its chairman said on Thursday.

The aircraft will be used by a low-cost airline Juneyao plans to launch in the second half of the year, Chairman Wang Junjin told Reuters on the sidelines of China’s annual parliament session in Beijing.

“We are in talks with both of the planemakers now, we are still evaluating the options,” Wang said, adding he would not consider the A320neo, a more fuel-efficient variant of the A320 narrowbody plane which Airbus has been marketing aggressively in China.

Juneyao’s budget carrier subsidiary will fly a domestic service from the southern Chinese city of Guangzhou initially and then expand into Southeast Asia in the future, Wang said.

“We are glad if any customers show interest in our airplanes,” said Boeing spokesman Wang Yukui. An Airbus China spokesman declined to comment.

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