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Air China, subsidiary to buy 100 Airbus planes

Xinhua | Updated: 2013-05-24 23:37

HONG KONG - Air China, the country's leading carrier, and its subsidiary Shenzhen Airlines have signed deals to buy a total of 100 Airbus 320-series planes for 8.85 billion US dollars, Air China announced Friday.

In a statement filed to the Hong Kong stock exchange, Air China, listed both in Hong Kong and Shanghai, said it agreed to buy 60 Airbus 320-series aircraft for 5.37 billion US dollars, which would be paid by cash in installments.

It expects to take delivery of the 60 planes in stages from 2014 to 2020.

Its subsidiary Shenzhen Airlines agreed to buy 40 Airbus 320-series planes for 3.48 billion US dollars, which would also be paid by cash in installments. The 40 planes are expected to be delivered in stages from 2016 to 2020.

The transaction will strengthen the fleet capacity of the Air China Group with an increase of about 15.9 percent based on the number of available tonne kilometers by the end of 2012. In particular, the deal is in line with the market requirements for Beijing-based Air China and will expand the fleet capacity of Shenzhen Airlines in south China.

The statement also said Airbus had agreed to buy back six A340-series aircraft in advance from Air China based on earlier arrangement.

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