Indian domestic carrier Paramount Airways has signed a $900 million draft deal to buy 10 Airbus A321 planes with an option for 10 more so as to start an international flight service, Airbus has said.

Airbus made the announcement during the Paris Air Show and said the company would use the planes to start international flights from southern India.

Paramount, based in Chennai, is a leading domestic airline in India and managing director M Thiagarajan said the deal was a strategic step in the airline's plans to expand and become a leading international carrier.

At Airbus, chief operating officer for customers John Leahy said he hoped that the deal opened the way for a long-term relationship between the two companies.