Spring to buy 21 A320 planes for US$2b
Print Edition
CHINESE budget carrier Spring Airlines plans to buy 21 Airbus A320 planes for 12.45 billion yuan (US$2 billion), citing growth in both international and domestic air travel.
The Shanghai-listed company intends to fund the purchase in part through a private placement of shares to raise 4.5 billion yuan, according to a statement to the exchange.
The single-aisle A320 has a list price of US$97 million, according to Airbus.
“Demand in China’s domestic and international aviation market is steadily increasing,” Spring said in the statement. “The company intends to reasonably expand the scale of its fleet to increase its air transport capacity.”
Spring Airlines, headquartered in Shanghai, was founded in 2005 and now flies more than 90 domestic and international routes, according to its website.
Spring’s shares, which had been suspended since June 26 owing to a rout on China’s stock market, closed up 3.21 percent yesterday, reversing a 10 percent plunge in early trading. The company’s net profit for the first quarter of this year jumped 46.43 percent year on year to 254.32 million yuan.
China, the world’s second-largest economy, is already Asia’s biggest aircraft buyer as a growing middle class takes to the skies in ever-increasing numbers.
Last year, US aircraft giant Boeing forecast Chinese carriers will need nearly 6,000 new planes valued at US$780 billion over the next 20 years, accounting for around 16 percent of world demand and nearly half of Asia’s.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
