Photo of a visitor looking at a display of miniature Boeing passenger aircraft at Aviation Expo China 2013 in Beijing. Reuters

The government-owned air carrier of Algeria has agreed to purchase three EADS (BMAD:EAD) -owned aircraft from Airbus and eight from The Boeing Company (NYSE:BA), according to official government reports and a Boeing press statement released Monday.

The deal will see Air Algerie add eight Boeing Next-Generation 737-800 aircraft to its fleet and is expected to cost $724 million. The North African country has 43 aircraft and is looking to expand its medium-haul capabilities, primarily to help it operate in the competitive and growing North Africa to Europe and Middle East routes.

Air Algerie already flies 17 of the 162-seat aircraft. "The 737-800 continues to be the backbone of Air Algerie's fleet. So far, we are pleased with these aircraft and anticipate receiving all eight of these new units before the end of 2016," said Mohamed Salah Boultif, chief executive officer of Air Algerie.

The airline also signed a deal to buy three Airbus aircraft, expected to be the 232-seater A330-200, for undisclosed terms. The purchase will expand its long-haul capabilities, an industry trend during 2013. Prices normally start at $216.1 million for each aircraft.

The airline also signed a deal to buy three small 70-seat aircraft from French company ATR, a move that will further Air Algerie's grip on the domestic market.