China Aircraft Leasing Group Holdings Ltd to purchase 50 A320neo aircrafts from Airbus SE for $5.42 billion

The actual price that China Aircraft Leasing Group Holdings Ltd will pay however be lower than the aggregate list price of $5.42 billion, since it is a common practice in the aircraft industry to provide concessions to buyers.

On Friday, China Aircraft Leasing Group Holdings Ltd disclosed that it will be purchasing 50 A320neo aircraft from Airbus SE for an aggregate list price of $5.42 billion.

The development underscores the firm’s intention of becoming a full value chain aircraft solutions provider by expanding its fleet, which will strengthen its position among its peers.

A subsidiary of China Aircraft Leasing Group Holdings Ltd has agreed to fund the purchase which will be settled using other borrowings, loans and internal resources, said the company in a filing to the Hong Kong stock exchange.

According to China Aircraft Leasing, which owns and manages 107 aircrafts, the actual purchase price will be lower than the list price since Airbus will provide concessions, as is the industry practice.

The aircrafts will be delivered in stages through 2023.

After the deal, the total aircrafts under its management would be 252, comprising 50 from Boeing and 202 from Airbus.

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