China Eastern Airlines provided (30-Apr-2012) further information on plans to purchase 20 Boeing 777-300ER aircraft, valued at USD5.94 billion at list prices, and sell five A340-600 aircraft. The carrier expects delivery of the 777-300ER aircraft between 2014 and 2018. The airline will fund the acquisition using working capital, bank loans and other sources of financing. The carrier will sell the A340-600 aircraft, with an unaudited book value of around CNY4.47 billion (USD708 million) to Boeing, with delivery between 2014 and 2015. China Eastern said the A340-600 aircraft, which mainly serve long-haul international routes such as Shanghai-New York and Shanghai-Los Angeles and have an average age of 8.3 years, had "high operation costs and have relatively weak route competitiveness". China Eastern said the purchase of the Boeing aircraft and disposal of the Airbus aircraft would lower its unit operation costs and optimise the fleet structure for long-haul routes. Boeing spokesman Yukui Wang said the company has in the past bought jets made by other manufacturers and then sold them to other companies. [more - original PR]
China Eastern to purchase 777–300ER aircraft, to divest five A340-600s to Boeing
You may also be interested in the following articles...
13 Chinese airlines could each have a fleet of over 100 aircraft by 2020
No-one can have escaped reports of the explosive growth of China's airline industry over the past decade. But to date this has largely been captive within the domestic market. Over the next five years, as the industry diversifies with further expansion, the impact will become much more apparent in international markets, bringing with it significant competitive and structural waves.
Of the 48 passenger airlines in the world today with over 100 aircraft, six are in mainland China: Air China, China Eastern, China Southern, Hainan Airlines, Shenzhen Airlines and Xiamen Airlines. And of the world’s 10 largest airlines by passenger fleet size, three are in China.
But, by 2020 there could be over 13 Chinese airlines operating over 100 aircraft. Some seem sure bets: Tianjin Airlines already operates 84 aircraft. At the other end of the scale, West Air's ambitious projection of 80-100 aircraft by 2020 comes on a current fleet size of only 13. There will be adjustments, as seen by Spring delaying from 2015 to 2020 its plan to operate 100 aircraft, an aspiration – albeit probably realistic – that fell short due to import restrictions outside Spring's control.
Of the 2,200 aircraft in service in China in 2014, 81% are narrowbodies (a higher proportion than in the US) with the 737 and A320 each staking an equal share.
Aircraft manufacturers revel in another likely record year of orders, after strong Farnborough
With the Farnborough International Airshow over, the major aircraft manufacturers have reported their July orders and deliveries and 2014 is shaping up as another exceptionally strong year for the global airliner market.
Despite the talk of an aircraft ordering bubble, demand remains strong despite some regional weaknesses, order backlogs continue to hit record highs and the major problem for manufacturers is getting their aircraft into the hands of their customers at rates that satisfy them.