[photopress:air_airchina_A330small.jpg,full,alignright]Air China has agreed to buy twenty Airbus 330-Series aircraft from Airbus at a cost of around $3.82 billion. The airline said the aggregate amount for the acquisition of Airbus aircraft is payable by cash in instalments, and it expects to take delivery of the Airbus aircraft in stages from early 2011-2014.
Air China said the transaction will be funded through cash generated from the its business operations, commercial bank loans and other debt instruments.
It said it does not expect the Airbus transaction to have any material impact on its cash-flow position or its business operations.
[photopress:air_air_china_airbus1.jpg,full,alignleft]All of this is predicated on the price of oil remaining relatively stable.
All forecasts on aviation growth have to be viewed bearing this factor in mind.
Worldwide there is a current trend to trim services, to cut unprofitable routes. China is not immune from this potential major problem.