Mexico's largest airline Aeromexico placed a provisional order with Boeing (BA) which is being termed as ‘the biggest aircraft investment by a Mexican airline in the country's history.’ The order amounting to $11 billion was placed for 737 MAX 8 planes and 10 787-9 Dreamliners. The deal could allow Aeromexico to overhaul its existing fleet of 110 aircraft over the next decade. The Dreamliners will begin arriving in the summer of 2013 and the 737 MAX 8 aircraft will be delivered starting in 2018.

"This is an important order for Aeromexico's expansion plans in the next few years, although at first glance it seems very aggressive," said Vector Casa de Bolsa analyst Marco Montanez.

"This will definitely help them roll out new routes and take advantage of operating efficiencies - fuel and maintenance savings - over the medium and longer term," he added.

"Over the mid-term, we want to own half of our fleet and lease the other half. Down the road we could reach 70 percent of company-owned fleet to have a more solid balance sheet," Jose Luis Barraza, head of Aeromexico's board, told Reuters.

The decision to buy was based mainly on bets Mexico's economy will remain robust in coming years, Aeromexico's Chief Executive Andres Conesa told a news conference in Mexico City.

The company will make its first pre-delivery payment of $40 million before the end of the year, when it expects to sign the purchase agreement. Aeromexico can easily finance that with its cash position, Conesa said on an earlier call with analysts. The next important payment will be in 2015, he added.

The company will have time to evaluate financing options for the later payment, Vector's Montanez said, adding it could consider cash or debt or a mix of the two.

Mexico and in particular Playa del carmen real estate region is witnessing a flurry of activities related to air travel. As Mexico is taking strides in its quest to become the biggest economy in the region, it is becoming a center of economic activity. Because of increase in influx of business travelers as well as leisure, many airlines have increased their flights, routes (Spirit Airlines To Fly To Los Cabos, VivaAerobus Makes 2 Additions in Its Services) and investments (Aerospace Firm Invests Millions In Mexico).

The latest order comes on top of a 20-aircraft package that Aeromexico announced last year, for 10 Embraer (EMBR3.SA) jets and 10 Boeing 737-8 NG.

Delta Air Lines (DAL) bought a 4 percent stake in Aeromexico for $65 million in June. No comment was made regarding the contribution of the U.S. airline towards payment.

Aeromexico went public last year increased its market share after rival Mexicana ceased operations before filing for bankruptcy in 2010.