Air China disclosed its plan to purchase six C919 narrow-body aircraft and 11 ARJ21 regional jets The post Air China to Buy $1.1 Billion 17 New COMAC C919 and ARJ21 appeared first on Aviation A2Z.
BEIJING- Air China (AC), the flagship carrier of the country, has revealed its intention to acquire a total of 17 domestically manufactured aircraft (COMAC) slated for delivery over the next two years.
In a late announcement on December 22, Air China disclosed its plan to purchase six C919 narrow-body aircraft and 11 ARJ21 regional jets from the developer Commercial Aircraft Corporation of China (COMAC) for CNY 7.6 billion (USD 1.1 billion).
Photo: By N509FZ – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=123586268
Air China C919 and ARJ21
To fund this acquisition, Air China aims to secure CNY 6 billion through a private placement from its controlling shareholder, China National Aviation Holding.
Out of the raised capital, CNY 4.2 billion will be allocated for the procurement of the new jets, while the remaining CNY 1.8 billion will be utilized to bolster working capital.
The C919, with a list price of USD 108 million, is competitively priced compared to its international counterparts, the Boeing 737-MAX 8 (USD 122 million) and the Airbus A320neo (USD 111 million).
Additionally, the ARJ21 is listed at USD 38 million, as provided by Air China. It’s important to note that list prices are generally higher than the actual transaction prices in the aviation industry.
Photo: By Weimeng at www.airliners.net – http://www.airliners.net/photo/COMAC-Commercial-Aircraft-Corporation-Of-China/COMAC-C919/4362053, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=61287391
1000+ Orders for C919
COMAC marked the delivery of its inaugural ARJ21 aircraft in 2015, and as of last month, these planes have successfully transported over 10 million passengers.
The more recent C919 model made its debut in December of the previous year when it was handed over to China Eastern Airlines, currently the sole carrier with C919 jets in its fleet, boasting a total of three.
Notably, orders for the C919 have surged to 1,061, as disclosed by Comac’s Chairman, He Dongfeng, during the Pujiang Innovation Forum in Shanghai in September.
The company is also strategizing the development of C919 variants, intending to expand the seating range from 158-168 to 130-240.
In the December 22 announcement, Air China outlined its intention to generate over HKD 2 billion (USD 226 million) by issuing non-public Hong Kong Stock Exchange-listed shares to a unit of CNAHC. This capital infusion is designed to fortify the airline’s general operating funds.
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The post Air China to Buy $1.1 Billion 17 New COMAC C919 and ARJ21 appeared first on Aviation A2Z.