Air China to raise up to $1.93bn to fund aircraft order
by Agency staff,
2015-07-28 17:06:33.0
BEIJING — Air China said on Tuesday it aims to raise up to 12-billion yuan ($1.93bn) in a private placement of A-shares to help fund the purchase of 15 Boeing aircraft and upgrade its direct sales service.
The new B787 Dreamliners, worth 24-billion yuan in list prices, will fly long-haul routes to North America and Europe, Air China said in a stock exchange filing. Delivery of the jets is scheduled to begin from 2016, it added.
Chinese airlines are speeding up their expansion at home and abroad amid rising business travel and a surge in outbound tourism fuelled by an increasingly wealthy middle class in coastal and inland cities.
That has also helped push up Boeing and Airbus aircraft orders. In September 2014, Boeing said it expected China to need more than 6,020 in the next 20 years, an 8% rise over its 2013 estimates.
In April, Hainan Airlines announced a 24-billion yuan private placement deal and nearly half of the funds raised were to be used to buy 37 aircraft.
That was followed by a similar initiative by China Eastern Airlines to fund the purchase of 28 aircraft.
The Shanghai-based carrier also plans to work with new investor Delta Air Lines to expand its global footprint.
Reuters
Air China plane, with Chinese President Xi Jinping onboard, taxis shortly after landing in Ufa, Russia. Picture: REUTERS/BRICS/PHOTOHOST/RIA NOVOSTI
BEIJING — Air China said on Tuesday it aims to raise up to 12-billion yuan ($1.93bn) in a private placement of A-shares to help fund the purchase of 15 Boeing aircraft and upgrade its direct sales service.
The new B787 Dreamliners, worth 24-billion yuan in list prices, will fly long-haul routes to North America and Europe, Air China said in a stock exchange filing. Delivery of the jets is scheduled to begin from 2016, it added.
Chinese airlines are speeding up their expansion at home and abroad amid rising business travel and a surge in outbound tourism fuelled by an increasingly wealthy middle class in coastal and inland cities.
That has also helped push up Boeing and Airbus aircraft orders. In September 2014, Boeing said it expected China to need more than 6,020 in the next 20 years, an 8% rise over its 2013 estimates.
In April, Hainan Airlines announced a 24-billion yuan private placement deal and nearly half of the funds raised were to be used to buy 37 aircraft.
That was followed by a similar initiative by China Eastern Airlines to fund the purchase of 28 aircraft.
The Shanghai-based carrier also plans to work with new investor Delta Air Lines to expand its global footprint.
Reuters
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