Tools: Save | Print | E-mail | Most Read
Air China Seeks Fleet Finance
Adjust font size:

Air China Ltd, China's largest international carrier, is seeking to borrow at least US$750 million this year to expand its fleet as travel demand rises in the world's second-biggest aviation market.

 

The airline plans to add 24 planes this year, Air China spokeswoman Rao Xinyu said in Beijing yesterday, according to Bloomberg News.

 

"We may seek more financing this year to fund the expansion," Rao said, without elaborating on the timetable or the types of aircraft the airline will buy.

 

Chinese airlines are seeking to finance expansion plans as the country's economic growth makes air travel affordable for more people. China's carriers flew 15 percent more passengers and 11 percent more cargo last year, in an aviation market that was second only to the US in size.

 

"China's big airlines have to expand their fleets to keep their market shares," said Alan Lam, an analyst at Guotai Jun'an Securities (Hong Kong) Ltd, who rates Air China's stock "buy."

 

Air China raised 4.59 billion yuan (US$590 million) in August to buy jets, including 25 planes from Boeing Co and 20 Airbus SAS A330-200s.

 

The airline in December won support from 99 percent of shareholders for a HK$3.23 billion (US$414 million) cash offer for shares it didn't already own in China National Aviation Co. The HK$2.80 per share acquisition will almost double Air China's stake in Cathay Pacific, to 17.5 percent.

 

(Shanghai Daily January 24, 2007)

 

Tools: Save | Print | E-mail | Most Read

Related Stories
Air China Works to Get Closer to United
Hainan Airlines Make a Profit in 2006
Singaporean Airplane Lands Safely in Beijing After Engine Catches Fire
HK, Macau Agents Get Airfare Go-ahead
Delta Eyes Atlanta, Shanghai Flight

Product Directory
China Search
Country Search
Hot Buys
SiteMap | About Us | RSS | Newsletter | Feedback
SEARCH THIS SITE
Copyright © China.org.cn. All Rights Reserved     E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP证 040089号