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Shanghai Airlines to buy 5 Airbus A321s, sell 4 B757 jets

Shanghai Airlines to buy 5 Airbus A321s, sell 4 B757 jets

Shanghai Airlines Co. said Friday it plans to buy five A321 planes from Airbus to expand its fleet, and sell four B757 craft to Aircastle and lease them back.
The moves were approved by the company's board to help expand the company's fleet, improve service and cut costs, Shanghai Airlines said in a notice to the Shanghai Stock Exchange.
The actual price of the five Airbus jets will be below the catalog price of about US$370 million (euro272 million), said the Shanghai-based carrier. Delivery of the planes is expected between 2011 and 2012.
Shanghai Airlines also said it will sell four Boeing aircraft, which have a total book value of US$63.24 million (euro46.5 million), to aircraft leasing company Aircastle Ltd. for US$66 million (euro48.5 million). It will lease them back from Aircastle to leverage use of its assets, the airline said.
With air traffic demand expected to grow 9 percent a year, according to industry estimates, China is forecast to take more than 3,000 new jet deliveries over the next two decades.
Thursday, Boeing Co. announced that China's Xiamen Airlines recently placed an order for 25 single-aisle 737 jets, with purchase rights for 10 more. The order had been announced earlier, but had been attributed to an unidentified customer.
Chicago-based Boeing said that order was worth US$1.9 billion (euro1.4 billion) at list prices, though airlines usually negotiate steep discounts.


Updated : 2021-03-08 15:51 GMT+08:00