BEIJING - China Aircraft Leasing Group Holdings Ltd (CALC) (1848.HK: Quote, Profile, Research, Stock Buzz) on Tuesday said it has finalised a $10.2 billion (about S$12 billion) deal to buy 100 planes from European aircraft maker Airbus Group NV (AIR.PA: Quote, Profile, Research, Stock Buzz) subject to shareholder approval.
The jets will be delivered over the period 2016-2022, and will be funded by bank loans, debt, equity financing and working capital among other means, CALC said in a stock exchange filing.
The deal, first announced on Nov. 6, includes 74 A320neo planes. The A320neo is a revamped version of the bestselling 150-seat A320, offering fuel savings of 15 per cent and due to enter service late next year.
Hong Kong-based CALC is part of an expanding breed of Chinese leasing companies focusing on medium-haul aircraft for the country's crowded domestic routes.
China is the world's fastest-growing aviation market and is set to surpass the United States as the busiest domestic air travel market within 10 years, according to recent Airbus forecasts.