Dubai Aerospace Enterprise said on Sunday it has reached a $340 million agreement with International Aero Engines, a consortium led by Rolls-Royce and Pratt & Whitney , for A320 Airbus aircraft engines.

The agreement between DAE Capital, an aircraft leasing unit of the Dubai state-owned firm, stipulates delivery of the engines would start in 2011, the company said in a statement.

DAE Capital has selected the v2500 Selectone engine to power 20 new airbus A320 family aircraft, it said in the statement on the sidelines of the Dubai Airshow.

The planes are part of a 70-aircraft order the leasing company announced in 2008.

(Reporting by John Irish; Editing by Hans Peters)