Air China gets financing for more aircrafts
By Jiang Hua, Daily Economic News | Mar. 31, 2006
HSBC yesterday (29) announced that they have received the sole authorization and will provide the leasing financing with a total amount US$881 million to Air China LTD, which makes it the largest amount of plane financing deal in China's history.
HSBC expresses that in the announcement the leasing financing agreement would be a 10-year-lease, the company will provide the financing service towards the 14 new aircrafts scheduled to be delivered this year. The planes leased by Air China include 11 Airbus planes and 3 Boeing planes. In detail, 6 Airbus 330-200s, 5 Airbus 319-100s and 3 Boeing 737-700s.
In addition, the day before yesterday Air China also made an announcement saying that the company shareholders' meeting has considered and passed the bill in issuing 2.7 billion A shares on 28th March 2006. Before that, a company spokesperson expressed that if the company shareholders' meeting passes the bill, the company will forward the relevant application to China Securities Regulatory Commission. However, because China's A shares market hasn't been re-opened yet, so there is no final time schedule when Air China regresses to the A shares market. This time Air China will use all the money collected on the A shares market to purchase 45 aircrafts in total as well as providing partial funding of Beijing Capital International Airport's third-stage complementary construction projects.
(Translation: CARNOC Mengping Tao)
Original URL: http://news.carnoc.com/list/66/66328.html