11-Feb-2010 9:51 AM

Air China purchases 20 A320 aircraft; delivery between 2011 and 2014

Air China and AIE (Air China's important agent) entered (10-Feb-2010) into an Airbus Aircraft Purchase Agreement for the purchase of 20 A320s, for delivery in stages from 2011 to 2014. The carrier stated it was granted "significant price concessions" for the aircraft, which have a list price of approximately USD1,628 million. The transaction will be funded through cash generated from Air China's business operations, commercial bank loans and other financing instruments. The new aircraft will expand Air China's capacity by 5% from 31-Dec-2009 levels. The aircraft would predominantly support hub-building in Chengdu and supplement capacity in Eastern China. [more]