Beijing, Apr 10: In a major deal, one of China's top three air carrier, China Southern Airlines will buy 21 Airbus A320 aircraft, becoming Asia's largest customer of this type of aeroplane. The airline will buy 15 A320 aircraft and six A319 aeroplanes from the France-based firm for a category price of more than one billion US dollars.
The contract makes China southern one of the largest A320 customers in China and Asia. The aircraft, powered by CFM International's CFM56-5 engines, are due to be delivered in the first quarter of 2005, reports said. China southern has flights connecting around 80 cities across the world, with its annual passenger traffic exceeding 20 million. China southern has 135 aircraft, 38 of which are manufactured by Airbus.
The deal is considered a big loss for US-based Boeing, which is the main rival of Airbus.
The contract marks a milestone in terms of the firm's progress in China's market, according to Airbus senior vice-president and Airbus China president Laurence Barron.
“China's air traffic is growing rapidly and some 1,600 large aircraft might be needed in the coming two decades,” Barron said, adding that the company's goal is to take at least 50 per cent of the market shares in China.
China southern chairman Yan Zhiqing said the A320 fleet was suitable for the airline's route structure and will be conducive to our expansion programme.
The company has also ordered four A330-200 aircraft last September, making it the first airline to own such a plane on the domestic market.
Bureau Report