Spring Airlines, the most successful Chinese low-cost carrier, said it has signed an agreement with the China Development Bank (CDB) on Jan. 12 for a US$300 Million loan to finance its fleet expansion.

According to the agreement, the loan will be used for purchasing 5 A320-200s. "By the end of this month, the airline's fleet size will reach up to 30 aircraft." said a Spring spokesman. In July 2011, the airline said it is moving forward with an IPO, which is scheduled to launch on the Shanghai Stock Exchange in the 1st quarter of 2012, to fund fleet expansion. The airline's fleet is expected to expand to 60 aircraft in the next four years.

Spring Airlines President Wang Zhenghua said the airline may temporarily postpone its IPO plan because of the depressed market and the IPO timetable will depend on market conditions. Wang disclosed the carrier will expand its fleet mainly by purchasing aircraft rather than leasing, and the proportion of the former is expected to reach 50% in the future.

Spring Airlines won approval from the Civil Aviation Administration of China in May 2004, and commenced operation in July 2005. The Shanghai-based budget airline operates more than 50 domestic routes and some international routes to Japan and Hong Kong.