Chinese leasing firm orders 50 Airbus jets in US$5.42 bln deal

HONG KONG: A Chinese aircraft leasing company said it will buy 50 Airbus A320neo jets for US$ 5.42 billion as part of a drive to capitalise on evergrowing demand for air travel in China.

Hong Kong- listed China Aircraf t Leasing Group (CALC) will take delivery of the airliners in stages through to 2023, it said in a statement.

The move comes as airlines in China benefit from a boom in domestic and international air trips as the country’s middle class spends more on travel and leisure.

It will also come as a boost to European giant Airbus, which is competing heavily with US rival Boeing in China, the world’s second aircraft market.

The US company has forecast China needs more than 7,200 commercial aircraft in the next 20 years, while the International Air Transport Association predicts the country will overtake the US as the world’s largest air-travel market by 2024.

The country’s three biggest carriers – Air China, China Eastern and China Southern intend to increase their fleets by more than 600 aircraft in total within the next three years.

CALC chief executive Mike Poon said: “We are proud to augment our fleet by adding 50 in- demand A320neo jetliners that have outstanding fuel efficiency, and are reliable and comfortable.

“Since CALC’s inception, we have maintained a close and dynamic relationship with Airbus, and the commitment marksyetanotherendorsement of our mutual trust . — AFP