[photopress:airbussiberia.jpg,full,alignright]China Eastern Airlines has signed a deal to buy ten A320 passenger jets from Airbus to meet domestic demand for short-and medium-distance passenger transport.
Price in theory is RMB4.64 billion ($618 million) but in the real world substantially less.
The purchase will paid in US dollars mainly with loans from commercial banks, and analysts said it would have no effect on the carrier’s daily cash flow and its short-term operations.
The aircraft will be delivered between March 2011 and May 2012, according to the announcement.
Air China and China Southern Airlines announced earlier this month that they had agreed to buy 23 and 45 passenger jets respectively to improve operating capacities.
Under the fierce competition from other domestic and foreign airlines, the China Eastern’s market share in Shanghai, its major market, has dropped below 40%.
Li Fenghua, chairman of the airline, is optimistic about the company’s future performance, and said it is working hard to fulfill the goal of more than RMB200 million profit this year.
The company is in talks with Singapore Airlines, which is looking to become a strategic investor. Our illustration is of the correct aircraft, an A320, but in the colors of another airline, Iberia.
Source: China Daily