China Aircraft Leasing has finalised the purchase of 100 jets from Airbus, at a total list price of US$10.2 billion, the company told the Hong Kong stock exchange on Tuesday.
It said the aircraft, bought at a “considerably lower” price than the list price, would be delivered between 2016 and 2022.
China Aircraft Leasing said the acquisition would be funded by its working capital and bank loans. The company said it had two loan facilities extended by mainland banks – US$1.5 billion from China Development Bank and 10 billion yuan from Import-Export Bank of China – dedicated to purchasing aircraft.
The 100 jets comprise 16 A320-200 CEO series, 10 A321-200 CEO series, and 74 A320 NEO series. The A320 NEO version, upgraded from the popular A320, offers fuel savings of 20 per cent a seat, according to Airbus.
China Aircraft Leasing is jointly controlled by state-owned China Everbright Group, China Aerospace Science and Technology Corporation and Friedman Pacific Investment Holdings, a Hong Kong-based investment fund.
The firm raised HK$591 million in its initial public offering in Hong Kong in July and said 90 per cent of the proceeds would be used for fleet expansion. China Aircraft Leasing made a net profit of HK$62.8 million in the first half of this year, up 43 per cent year on year.