English | دری

China Eastern Airlines says to buy 20 Boeing aircraft

in International Business

China Eastern Airlines Corp Ltd (0670.HK) said on Monday it has agreed to buy 20 new Boeing B777-300ER aircraft from Boeing Co (BA.N), valued at $5.94 billion based on the 2011 price catalog.

In a filing to the Hong Kong bourse, China Eastern said the aircraft were expected to be delivered in stages from 2014 to 2018.

Boeing (BA.N) said on Friday that China Eastern Airlines had agreed to buy the 20 aircraft, pending Chinese government approval.

The Chinese carrier also said it would sell five Airbus A340-600 aircraft, with an unaudited book value of about 4.47 billion yuan ($708 million), to Boeing.

China Eastern said the A340-600 aircraft, which mainly serve long-haul international routes such as Shanghai-to-New York and Shanghai-to-Los Angeles, had high operation costs and relatively weak route competitiveness.

The Airbus aircraft began service in 2003 and 2004 and had an average usage of about 8.3 years.

China Eastern said the purchase of the Boeing aircraft and disposal of the Airbus planes would lower its unit operation costs and optimize the fleet structure for long-haul air transportation routes.

China Eastern Airlines posted a 73.7 percent fall in net profit for the first quarter of 2012 to 266.5 million yuan.

($1 = 6.3102 Chinese yuan)

Source: Reuters



Related Articles

Japanese exports to China tumble

Amid recent territorial disputes between China and Japan, Japanese exports to China fell 14.1% in September compared to the previous

Germany on a downgrade warning from Moody

The credit ratings agency Moody’s has warned the outlook for Germany’s AAA credit rating is negative, the first step towards

China pledges USD 20bn in credit for Africa

China pledged USD 20bn in credit for Africa at a summit in Beijing with leaders from 50 African nations. Africa

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*