China Southern Airlines orders 80 Airbus aircraft worth $9b

BEIJING - China Southern Airlines Co Ltd on Friday said it has ordered 80 aircraft from Airbus Group NV worth at least US$7.3 billion (S$9.13 billion).

China Southern said it will receive 30 A320 and 50 A320neo airplanes from 2016 to 2020, increasing capacity by over 12 per cent. The airline will pay for the order using its own funds and bank loans.

China Southern will also sell 6 Embraer SA E145 jets and components to Airbus before year-end, reducing capacity by 0.02 per cent, the Guangzhou-based carrier said in a statement on its website.

Chinese carriers have recently been increasing capacity to add flights and routes in China and beyond.

Earlier this week, 9 Air, a newly founded budget subsidiary of privately owned Juneyao Airlines, ordered 50 Boeing 737 jets.