ZCZC
BCN-09
HONGKONG-CHINA-AVIATION-AIRBUS-CALC
Chinese leasing firm orders 50 Airbus jets in $5.42 bn deal
HONG KONG, Dec 29, 2017 (BSS/AFP) – A Chinese aircraft leasing company
said on Thursday it will buy 50 Airbus A320neo jets for $5.42 billion as part
of a drive to capitalise on ever-growing demand for air travel in China.
Hong Kong-listed China Aircraft Leasing Group (CALC) will take delivery of
the airliners in stages through to 2023, it said in a statement.
The move comes as airlines in China benefit from a boom in domestic and
international air trips as the country’s middle class spends more on travel
and leisure.
It will also come as a boost to European giant Airbus, which is competing
heavily with US rival Boeing in China, the world’s second aircraft market.
The US company has forecast China needs more than 7,200 commercial aircraft
in the next 20 years, while the International Air Transport Association
predicts the country will overtake the US as the world’s largest air-travel
market by 2024.
The country’s three biggest carriers — Air China, China Eastern and China
Southern intend to increase their fleets by more than 600 aircraft in total
within the next three years.
CALC chief executive Mike Poon said: “We are proud to augment our fleet by
adding 50 in-demand A320neo jetliners that have outstanding fuel efficiency,
and are reliable and comfortable.
“Since CALC’s inception, we have maintained a close and dynamic
relationship with Airbus, and the commitment marks yet another endorsement of
our mutual trust.
“This bulk purchase will significantly expand CALC’s fleet portfolio and
further solidify our position as a full value-chain aircraft solutions
provider.”
The statement from CALC said the announcement takes its total orders with
Airbus to 202 aircraft, adding it would “purchase 15 additional Airbus
A320neo aircraft in January 2018 subject to the fulfillment of certain
conditions”.
The firm, which also has 50 jets on order from US giant Boeing, currently
has 102 aircraft.
The firm’s shares were up 2.0 percent at HK$8.17 by the break in Hong Kong
trade.
BSS/AFP/MR/ 1055 hrs