On the evening of July 1, Air China, China Southern Airlines, and China Eastern Airlines all issued announcements on the purchase of aircraft. The "three major airlines" and their holding subsidiaries will purchase 96, 96, and 100 Airbus A320NEO series aircraft respectively. The

2024/05/1306:45:33 military 1546

Affected by the epidemic, the aviation industry continues to be in a downturn, but airlines have begun to buck the trend and start increasing transportation capacity. On the evening of July 1, Air China , China Southern Airlines , and China China Eastern Airlines all issued announcements on the purchase of aircraft. The "three major airlines" and their holding subsidiaries will purchase 96, 96, and 100 Airbus aircraft respectively. The A320NEO series aircraft cost a total of US$37.257 billion (approximately RMB 249.6 billion).

On the evening of July 1, Air China, China Southern Airlines, and China Eastern Airlines all issued announcements on the purchase of aircraft. The

The "three major airlines" purchased a total of 292 new aircraft

Air China announced that as approved by the fifth meeting of the company's sixth board of directors, the company and its wholly-owned subsidiary Air China Import and Export Company and Airbus Signed an Air China purchase agreement to purchase 64 Airbus A320NEO series aircraft from Airbus; the company's holding subsidiary Shenzhen Airlines signed a Shenzhen Airlines purchase agreement with Airbus on July 1 to purchase 32 Airbus A320NEO series aircraft from Airbus airplane. The total basic price of the aforementioned 96 Airbus A320NEO aircraft is approximately US$12.213 billion (price in January 2020). The aforementioned aircraft that the company intends to purchase are scheduled to be delivered in batches from 2023 to 2027; the aforementioned aircraft that Shenzhen Airlines intends to purchase are scheduled to be delivered in batches from 2024 to 2026.

China Southern Airlines announced that the company signed an agreement with Airbus on July 1 to purchase 96 A320NEO series aircraft from Airbus. The open market price of the A320NEO family aircraft (based on Airbus’ January 2020 list prices) is approximately US$105 million to US$136 million per aircraft. The basic price of 96 A320NEO series aircraft is approximately US$12.248 billion (converted based on 1 US dollar to 6.6863 yuan, approximately RMB 81.894 billion). The above-mentioned 96 A320NEO series aircraft are planned to be delivered to the company in batches from 2024 to 2027, of which 30 will be delivered in 2024, 40 in 2025, 19 in 2026 and 7 in 2027.

China Eastern Airlines announced that the company signed an "Agreement to Purchase 100 A320NEO Series Aircraft" with Airbus in Shanghai, China, on July 1, purchasing 100 A320NEO series aircraft from Airbus. The total basic price of the 100 A320NEO series aircraft purchased this time is approximately US$12.796 billion (open market quotation, catalog price in January 2020), based on the RMB/USD midpoint announced by the People’s Bank of China on the day when this transaction agreement was signed. Calculated based on the price exchange rate (1 US dollar to 6.7035 yuan), it is approximately 85.778 billion yuan. The above 100 aircraft are planned to be delivered to the company in batches from 2024 to 2027.

The aviation market maintains a long-term positive trend

China Eastern Airlines stated that the global pandemic of the new crown pneumonia epidemic has had a huge impact on social and economic development and caused heavy damage to the global aviation industry. As my country's per capita income grows and the size of the middle class increases, China's aviation market will continue to maintain a long-term positive trend. According to the "14th Five-Year Plan for Civil Aviation Development" issued by the Civil Aviation Administration of China, it is expected that by 2025, the number of annual flights per capita in my country will increase from 0.47 in 2019 to 0.67. The growth potential of China's aviation market is still huge. Based on confidence in the future development of the civil aviation industry, companies need to plan and reserve fleet capacity in advance.

China Eastern Airlines also introduced that the A320NEO series aircraft are the latest generation of narrow-body aircraft models from Airbus. Through China Eastern Airlines Co. , Ltd. Equipped with a new generation of large bypass ratio engines and sharklets, the A320NEO series aircraft can reduce hourly fuel consumption by about 15% and engine noise levels by 50% compared with the previous generation. The fuel economy and environmental protection levels have been significantly improved. It helps to improve the passenger experience and is of great significance for the company to keep the overall fleet young and advanced, thereby reducing fuel consumption and carbon emissions, and helping to achieve the "double carbon" strategic goal.

China Southern Airlines stated that this aircraft transaction is in line with the fleet development strategy formulated in the company’s 14th Five-Year Plan. After comprehensive evaluation by the company, it is a favorable window period for aircraft introduction negotiations. The company can use the current opportunity to strive for better purchase conditions. This aircraft transaction will help enhance the company's market competitiveness.Regardless of possible adjustments to the fleet based on the market environment and aircraft age, based on the available ton kilometers (ATK) of the company and its holding subsidiaries, the purchase of 96 A320NEO series aircraft will increase the group's transportation capacity by approximately 13.0%. .

Air China also stated that it expects this transaction to make the group's operating costs more competitive in the market, while also helping to provide passengers with high-level services that are safe and comfortable.

Source: China Securities Journal

Editor: Xing Zhibin

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