|
|
China Eastern Airlines to buy two 747-400 planes from Boeing
BY OUR AVIATION CORRESPONDENT
11 June, 2005: China Eastern Airlines Corporation Ltd is to acquire two Boeing 747-400 aircraft, with a catalogue price of about $428 million. The aircraft are scheduled for delivery between July 2006 and August 2007 and would be for use of its freight unit, China Cargo Airlines Ltd.
China Cargo, in which China Eastern Airlines owns a 70 per cent stake, would use the new aircraft to satisfy the growing demand in the air cargo market.
The purchase was approved by China Eastern Airlines board, but is yet to get governmental approval for the acquisition. The purchase, mainly to be funded by bank loans, requires government approvals.
However, the actual price would be lower than the catalogue price as airlines typically receive discounts while going for large or repeat. China Eastern Airlines is silent on the engine supplier for the aircraft.
The purchase of two Boeing freight aircraft would help satisfy growing demand for air cargo over the coming years, China Eastern Airlines said in a statement in the official Shanghai Securities News.
China Eastern had signed an agreement in April with Airbus SAS to buy 15 A320 aircraft for $833 million. The price was fixed based on the Airbus' catalogue price brought out in 2000 and was much lesser than the existing market price.
At present, China Cargo Airlines has a fleet of six Boeing MD-11 freighters, ferrying to destinations like Chicago, Paris and Tokyo.
China Eastern is one of the country's three biggest carriers, the others being Air China Ltd and China Southern Airlines Co.
|
