Air China, the
national carrier, will buy 20 Airbus A330-200s to serve its major
international and domestic routes, airline spokesperson Wang
Yongsheng confirmed on Thursday.
Although Wang did not elaborate on the deal, a
statement issued on the website of the Hong Kong Stock Exchange --
where the company is listed -- said the airline will pay less than
the catalogue price of US$2.86 billion, but did not give the exact
amount.
The new planes will fly to the airline's major
international destinations in Europe, Australia, North America and
certain key domestic destinations such as Lhasa, Air China
said.
The deal, approved by its parent firm China
National Aviation Holding Co, will be funded through cash from the
company's operations and commercial bank loans, said the
airline.
The aircraft will be delivered between the middle
of next year and the end of 2008, the airline said.
The nation's biggest airline was listed in Hong
Kong and London last month to attract more capital to serve its
international ambitions.
But officials at the Beijing office of Airbus,
controlled by European aerospace giant EADS, remained tightlipped
about the deal.
China Southern
Airlines is also expected to sign an agreement in Paris Friday
to buy five 555-seat A380s, and according to a Bloomberg report,
the massive transaction will be worth US$1.4 billion.
The airlines' fleet expansion is a reflection of
the robust growth taking place in the civil aviation sector.
Last year was a good one for the industry, with
total profits of 8.69 billion yuan (US$ 1.04 billion), according to
the Civil Aviation Administration of China (CAAC). These profits
equaled the sector's cumulative profits over the previous
decade.
According to the CAAC, passenger transport turnover
totaled 120 million last year, a year-on-year increase of 38
percent. Cargo and mail transport volume was 2.7 million tons, up
23.3 percent.
(China Daily January 28, 2005)