|Quoting Lumberton (Reply 3):|
Does not the central government actually arrange for the purchase of commercial aircraft in China?
The aircraft will come from a deal for 150 of the planes announced last October by Airbus and state agency China Aviation Supplies Import and Export Group Corporation (CASGC), an Airbus spokesman said.
China Southern Airlines to buy 45 jets from Airbus, Boeing
SHANGHAI (MarketWatch) -- China Southern Airlines Co. said late Monday it agreed to buy 20 A320 jets from Airbus and 25 B737-800 planes from Boeing Co. to increase its operating capacity.
The air carrier said in a statement the combined list price of the transaction, which has been approved by its board, is up to US$3.69 billion, but the actual purchase price will be lower than that figure. China Southern said the 20 Airbus A320 aircraft have a list price of between $66.5 million and $85.9 million each. It said its 60%-owned Xiamen Airlines unit will purchase the Boeing B737-800 jets, which have a catalogue price of between $70.5 million and $79 million each. The Airbus jets will be delivered to Southern Airlines between March 2009 and August 2010, and the Boeing planes will be delivered to Xiamen Airlines between July 2011 and November 2013.Southern Airlines said it and its unit will use bank loans and operating funds to finance the deal.
"We believe the deal will better provide our passengers with premium services and enhance the competitiveness of the company," said Southern Airlines.
"We expect the transaction, along with the 12 Boeing B737-800 aircraft and six Boeing B777F planes acquired by the company in the past year, to increase operating capacity by 19.5%." Guangzhou-based China Southern Airlines is one of the country's three major airlines, along with Air China Ltd. (0753.HK) and China Eastern Airlines Corp. CEA).
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