State-owned airline Kuwait Airways Corp. (KAC) plans to buy 12 Boeing 787 Dreamliners and seven Airbus A320s from a local firm that has standing orders for the aircraft, a newspaper said on Monday.

Al-Watan newspaper said the airline would buy the aircraft from Aviation Lease and Finance Co. (Alafco), which has confirmed contracts with the aircraft makers to avoid delays in delivery. It cited sources familiar with the talks.

The paper said KAC and Alafco were expected to sign a memorandum of understanding within days after a KAC committee made a "final decision" on the aircraft purchase.

Both Alafco and KAC officials were not immediately available for comment. KAC has said it was in talks with Airbus and Boeing to renew its ageing fleet.

The paper said the memorandum of understanding would give Kuwait Airways the option to buy seven extra A320 planes.

Alafco would be able to deliver the A320s in 2009 and the Boeings in 2010.

Kuwait Airways, which currently has 17 aircraft, said in April it hoped to conclude purchase negotiations with Airbus and Boeing by the end of May.

It has said it planned to buy up to 30 planes by 2015, later increase the fleet to 55 and would look at Boeing's 777, 787, 737 models and at Airbus's A350, A320 and A340.  -Reuters