China aircraft to buy 50 Airbus jets valued at US$7.2 bil

SINGAPORE (Dec 29): China Aircraft Leasing Group Holdings agreed to buy 50 Airbus SE single-aisle airliners with a combined list price of US$5.42 billion ($7.24 billion) to help meet surging air travel demand in an aviation market set to surpass the US as the world’s biggest.

The transaction for the A320neo aircraft was done through an amendment to a 2014 purchase agreement, and the European plane maker granted “significant price concessions,” the Hong Kong-based leasing company said in a filing Friday. Deliveries are expected in stages in 2023, said the lessor, which counts Air China and ANA Holdings Inc. among its customers.

China Aircraft Leasing is expanding its fleet along with competitors amid a flying boom that would make China the largest air-travel market possibly as soon as around 2022, according to estimates by the International Air Transport Association. Boeing Co. expects China needs 7,240 new planes valued at almost US$1.1 trillion in the two decades through 2036, with narrowbody aircraft making up for three quarters.

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