China Business

Jun 20, 2006

Air China to buy 24 Airbus A320s for US$1.74 bn

BEIJING - Air China has inked a deal with Airbus to buy 24 Airbus A320 planes, according to a June 16 report in the Shanghai Securities News.

Under the US$1.744 billion deal, signed on June 15, the China national carrier will pay Airbus cash in installments. The planes

are expected to be delivered to China between 2007 and 2010.

Air China said the purchase of the Airbus A320 airplanes will help upgrade its carrying capacity and cement Beijing's position as a communication hub. It will use the aircraft to launch more domestic routes from Beijing, it said.

The report said the deal is part of the nearly $10 billion agreement signed by China Aviation Supply Corporation and Airbus last December.

The corporation has ordered 150 Airbus A320 planes, which will be distributed to Air China, China Eastern Airlines, Sichuan Airlines, China Southern Airlines, Shenzhen Airlines and Hainan Airlines.

The Chinese government announced recently that a new plant for assembling Airbus A320s in China, in the northeastern city of Tianjin, would begin operation in 2008.

(Asia Pulse/XIC)

China Travel

China Tours

Yangtze River Cruise

Great Wall of China

China Airline

Map of China

Head Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110