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Air China to buy 18 Airbus planes for $2.2 billion

2021/3/20 21:09:55
The Chinese flag carrier, Air China, announced on Thursday that it has signed an agreement with AFS Investments Inc, a subsidiary of aircraft leasing giant GE Capital Aviation Services (GECAS), to buy 18 Airbus A320neo planes from the European manufacturer to improve its transport capacity.

The deal, worth $2.2 billion, will deliver 18 planes to Air China by 2022 in batches, according to a statement by the carrier sent to the Shanghai Stock Exchange. The actual transaction price will be adjusted after purchase price concessions are confirmed.

The airline added that the deal will improve the company’s transport capacity by 2.12 percent.

“The recovery of China’s domestic aviation market has outperformed the international market since epidemic prevention was regulated, which drives the utility rate of narrow-body aircraft in the domestic market. The purchase will supplement the long-term transport capacity of Air China in Beijing and Chengdu,” Air China announced.

Air China operates roughly 700 planes by the end of 2020, among which 366 are Airbus crafts and 328 are Boeing planes, according to media reports.

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