BEIJING- Air China (CA) recently finalized an agreement with Comac to acquire 100 C919 aircraft, joining a prestigious list of customers for the narrowbody program.
According to a stock exchange filing dated April 26, the Beijing-based carrier outlined plans to deliver the new aircraft from this year until 2031, with an unspecified portion aimed at fulfilling the airline’s fleet renewal requirements.
Air China C919 Order
The filing also emphasized that the actual net increase in fleet capacity would be carefully managed within reasonable limits.
While Air China didn’t disclose the exact value of the purchase, it noted significant price concessions for the C919 acquisition. The deal is valued at approximately $10.8 billion based on list prices.
The airline intends to settle the order in cash, asserting that the price concessions obtained for the Comac aircraft purchase will not significantly impact the group’s fleet’s unit operating costs.
Air China specifies that the acquisition will be financed “through internal funds, commercial bank loans, and alternative financing methods,” anticipating no adverse effects on its cash flow.
“The transaction aligns with the company’s development strategy and market demand, contributing to the optimization of fleet structure and long-term fleet capacity enhancement,” Air China states. Comac has yet to comment publicly on the agreement.
Chinese Carriers Ordering COMAC Jets
As an existing operator of Comac’s ARJ21 regional jets, Air China currently has over 20 such aircraft in service. This new order will join China Eastern Airlines, another major carrier, as a C919 operator.
China Eastern Airlines (MU), based in Shanghai, became the launch customer for the program, inaugurating commercial service with its first C919 in May 2023.
Other Chinese carriers committed to the C919 include Tibet Airlines (TV), which placed an order at this year’s Singapore Air Show, and subsidiaries of Hainan Airlines, namely Suparna Airlines and Urumqi Air.
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