POST Online Media Lite Edition


China Aircraft Leasing Group to buy 100 Airbus planes

Staff writer |
Airbus Group NV won a pledge from China Aircraft Leasing Group Holdings for the purchase of 100 planes valued at $10.2 billion as the Chinese lessor seeks to build a portfolio to power expansion in the region.

Article continues below

The order is for 100 single-aisle A320 planes, a combination of existing models and future ones with new engines, the Tianjin-based company said in a statement to the Hong Kong stock exchange on Thursday. A formal agreement may be signed before the end of the month, it said.

Leasing companies are boosting their fleets and expanding across Asia as the region is set to overtake the US as the world's largest plane market, spurred by demand from China, India and Southeast Asia.

Thursday's agreement comes less than a month after Airbus won a commitment for 250 planes valued at $26 billion at list price from Indian budget carrier IndiGo. Carriers in China, India and other Asian countries are buying more planes as economic growth lifts demand for air travel.

Last month, Airbus also won an agreement from China for 70 A320 single-aisle family planes valued at $7 billion. China is poised to displace the US as the world's largest plane market in two decades, according to the European planemaker.

What to read next

First Airbus A330 from China to be ready in September
Boeing to sell 300 jets to China, build plant
Avolon Holdings to buy CIT Group's unit for $10 billion