Thus the airline will get a sum which will be equivalent to the unaudited book value of the aircraft as at the completion date.
As at 27 June 2008, the unaudited book value of the aircraft was RMB1.29 billion ao it will not be far from that.
The term of the leasing is 72 months. The rental fee and handling fee for each aircraft is RMB80 million a year so three come to RMB240 million a year or RMB1.54 billion over the leasing period.
China Eastern Airlines expects that the transactions may improve the allocation and use of the company’s fixed assets, create new channel for the finance arrangement of the company and enhancing the company’s cash flow position.