China Eastern Airlines has agreed to sell two Airbus A340 jets for RMB590 million ($86 million dollars) to improve its cash flow. This is a sale and lease back deal.
The nation’s third largest carrier by fleet size said it sold the two planes to China’s Bank of Communications Financial Leasing.
China Eastern said last month it hoped to receive more financial support from Beijing after receiving RMB7 billion in aid, but that the government had not yet made any commitments.
The airline said it intended to channel the proceeds from the sale of the aircraft into its operations.
It will pay about RMB17 million for each aircraft per quarter to lease them back over the next five years.
The Guardian reported that Boeing had said output of its 777 wide-body twin-jet would fall to five planes a month from seven starting in June 2010. It added that it would postpone modest planned production increases of its 747-8 and 767 wide-body planes.
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