China Eastern Airlines to buy 25 Airbus A330 neo jets for $9.4 billion
China Eastern Airlines Expands Fleet with Major Airbus A330neo Purchase
Deal Overview and Strategic Expansion
BEIJING/HONG KONG, June 26 (Reuters) - China Eastern Airlines said on Friday it plans to buy 25 A330 neo jets from Airbus for a catalogue price of about $9.35 billion, as the Chinese carrier expands its widebody fleet to serve more international routes.
Delivery Timeline and Agreement Details
The aircraft are scheduled to be delivered in batches from 2029 to 2033, China Eastern said in a filing to the Shanghai Stock Exchange, adding that the two companies signed the purchase agreement in Shanghai earlier in the day.
Purpose of the Aircraft Acquisition
"The transaction will be used for the company to supplement its future transport capacity and to replace and upgrade its existing aircraft models," the filing said.
About the Airbus A330neo
The A330neo is an upgraded fuel-efficient version of the previous-generation Airbus A330 long-haul jet, featuring high-aspect-ratio wings and improved aerodynamics. It is powered by Rolls-Royce Trent 7000 engines.
Financing and Operational Impact
China Eastern said the latest deal would be funded through a mix of its own capital, bank loans, bond issuances and other financing instruments, and that the phased payment structure was not expected to have a material impact on its cash flow or operations.
Deployment and Route Expansion
The Shanghai-based airline said the widebody jets would primarily be deployed from Shanghai Pudong Airport to expand intercontinental destinations and increase flight frequencies, bolstering the hub's role as a transfer centre for long-haul routes.
(Reporting by Beijing Newsroom, Julie Zhu in Hong Kong and Tim Hepher in Paris; Editing by David Goodmand and Emelia Sithole-Matarise)
