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Air China and Shenzhen Airlines purchase 55 Airbus jets at a list price of $12.4 Billion

Air China and Shenzhen Airlines, China's flag carrier, will purchase 55 -Airbus aircraft at a list price of $12,4?billion. The move is part of the Chinese flag holder's efforts to modernise and expand its fleet.

Air China has agreed to purchase 15 A350-900 wide body jets. Shenzhen Airlines, on the other hand, will buy 40 narrow-body A320neo family aircraft. This is according to an Air China filing with the Shanghai Stock Exchange.

Delivery of the A350-900 jets is scheduled between 2030 and 2032. The A350 900 jets are valued at about $6.09billion based on Airbus list prices for January 2025. The A320neo aircraft family, worth a total of $6.35 billion, based on the January 2024 list prices, is scheduled for delivery between 2029-2032.

Air China stated in its filing that Airbus would offer significant discounts on large aircraft orders, which is a common practice. Both airlines will finance the purchase through a combination of their own funds and commercial bank loans, as well as other financing arrangements.

Chinese carriers are re-building and expanding their fleets in response to the pandemic. Air China stated that the new aircraft would help 'optimise its fleet structure,?routes network, improve operational efficiencies and reduce costs.

The A320neo competes with the medium-haul Boeing 737 MAX while?the A350 900 is largely?used for long-haul international flights. Reporting by Julie Zhu, Time Hepher, Ethan Wang, Ryan Woo, and Ethan Wang in Hong Kong; editing by Susan Fenton

(source: Reuters)