Air China seeks financing for 22 new planes, but no Americans

Air China plans to raise about $2.2 billion in the private market to fund the acquisition of 22 Airbus and Comac aircraft. The project was revealed through a note submitted to the Shanghai Stock Exchange on August 3. Of the total, $1.6 billion will be used to purchase nine A350s, four A320neos and nine ARJ21s, while $620 million will be used to replenish its working capital.

The move follows an announcement on July 1, when Airbus said it had secured a large order for 292 A320 family aircraft for four Chinese airlines, Air China, China Eastern, China Southern Airlines and Shenzhen Airlines. In this way, it is possible that part of what Air China does is related to the Airbus order.

In the exchange document, Air China that “Purchasing aircraft with the funds raised in this non-public offering is more conducive to the Company’s control over the amount of its interest bearing liabilities and the improvement of the Company’s financial position, the improvement of its capital structure and its increased ability to withstand scratches.”.

The introduction and operation of 22 aircraft could improve capacity, increase transport volume on major routes, and increase network revenues. The newly introduced aircraft will partially replace older aircraft, improving fleet structure and reducing fuel consumption and maintenance costs.”he added.

China Airlines fleet is one of the largest in the world. At the end of 2021, the company had a total of 746 passenger aircraft with an average age of 8.23 ​​years.