Airbus to Deliver 60 A320neo Aircraft to Air China
According to a regulatory statement filed with the Shanghai Stock Exchange, Airbus and Air China officially announced yesterday their aircraft purchase agreement. This is a major order for 60 A320neo family aircraft, with an estimated value of approximately $9.53 billion (at list price). The aircraft will be delivered in batches between 2028 and 2032.
For Air China, the purpose of these acquisitions is to modernize its fleet, optimize operational efficiency, and reduce its carbon footprint (the neo model consumes about 20% less fuel).
In addition, it strengthens the airline's presence on domestic and regional (medium-haul) routes to meet the expected growth in Chinese air traffic.
The transaction has been approved by the Board of Directors. It remains subject to validation by the General Meeting of shareholders and approval by Chinese state authorities.
Air China will finance this transaction through its own funds, commercial bank loans, and other financing methods.
The Chinese group expects that this transaction will have no significant impact on its cash flow or business operations.
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Airbus SE is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Net sales break down by family of products and services as follows:
- commercial aircraft (71.7%). The group is No. 1 worldwide for aircrafts with more than 100 seats;
- defense and aerospace systems (17.3%): military aircrafts (primarily transport aircrafts, marine surveillance aircrafts, anti-submarines fighter planes and flight refueling aircrafts), spatial equipment (orbital launchers, observation and communication satellite, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also provides training and aircrafts maintenance services;
- civil and military helicopters (11%).
Net sales are distributed geographically as follows: Europe (40.2%), Asia/Pacific (25.6%), North America (23.7%), Middle East (4.5%), Latin America (2.5%) and other (3.5%).
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