By Joanne Chiu
HONG KONG-- China Southern Airlines Co. signed an agreement to
buy a total of 80 passenger aircraft from Franco-German Airbus
Group NV with a combined list price of up to $9.33 billion, as it
seeks to expand capacity and improve efficiency.
The Guangzhou-based carrier said Friday in a statement that it
ordered 30 Airbus 320 series aircraft and 50 Airbus 320NEO series
aircraft, which are scheduled to start delivery in 2016.
The latest aircraft purchase comes as Chinese airlines continues
to expand their aviation network to cope with the nation's rapidly
growing air travel demand, while at the same time speeding up
retirement of older and less fuel-efficient aircraft to reduce
operating cost. In February, small rival China Eastern Airlines
Corp. made an order to buy 70 Airbus A320NEO aircraft with a list
price of $6.37 billion, as it seeks to boost capacity.
China Southern didn't disclose the purchase prices but said the
actual consideration for aircraft is significantly lower than the
list price as Airbus had granted it "significant price
concessions." Airlines usually receive discounts for large
orders.
Once all the Airbus aircraft have been delivered, the carrier's
available ton kilometers--a measure of capacity--will increase by
12% from the end of December 2013, it added.
Separately, China Southern said it agreed to sell back six
ERJ145 aircraft and certain spare parts to the aircraft
manufacturer, without disclosing further details.
Write to Joanne Chiu at joanne.chiu@wsj.com
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