Air China commits to purchase 60 Airbus A320NEO series aircraft

Air China announced that the company and AIE have reached an agreement to purchase Air China aircraft with Airbus (EADSY), under which the company agreed to purchase 60 Airbus A320NEO series aircraft from Airbus. “The list price of the Airbus Aircraft to be acquired by the Company, in total, is approximately $9.53 billion. Airbus Company has granted the Company significant price reductions with respect to the Airbus Aircraft. These concessions will be in the form of credit notes which may be used by the Company for final payment of the price of the Airbus Aircraft to be acquired by the Company or may be used for the purpose of purchasing goods and services from “These credit ratings were determined after arm’s length negotiations between the parties and, therefore, the actual consideration for the purchase of aircraft from Air China is lower than the list price of the aircraft mentioned above,” the company said in a notice to the Hong Kong Stock Exchange.

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