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Sat, Jan 01, 2011

China Eastern Plans 50 Airbus Buy

Would Expand Seat Capacity Over 11 Percent

China Eastern Airlines told the Hong Kong stock exchange that it plans to buy 50 Airbus aircraft of various types to be delivered in the next four years. The list price on the airplanes is reported at $3.22 billion.

China Eastern said Airbus made "significant price concessions" to get the deal, according to the French news service AFP. The aircraft will fly under China Eastern colors, as well as its Shanghai Airlines subsidiary.

Airbus and Boeing have both announced sizable deals with airlines in China late in 2010. Projections from Boeing are that the Chinese market will require over 4,300 new airliners over the next 20 years. The Chinese government offered up a more aggressive forecast last month, saying that there would be as many as 5,000 airliners plying the country's skies in the next 15 years.

FMI: www.flychinaeastern.com, www.airbus.com

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