DA.C - View Single Post - China Southern has no plans to acquire Airbus jets

Gordon Werner · 08-23-2001, 10:25 AM

China Southern has no plans to acquire Airbus jets

HONG KONG, Aug 23 (Reuters) - China Southern Airlines, the country's largest carrier which said this month it would acquire 20 Boeing planes, said on Thursday it has no plans to buy Airbus jets.

"We have no plans to increase the number of our Airbus planes," vice chairman and president Wang Changshun told reporters at an interim results briefing but declined to give further details.

At the end of June 2001, the Guangzhou-based airline had 110 aircraft, including 90 Boeing planes and 20 Airbus planes.

Airbus SAS said on Wednesday China will probably order between 30 and 50 of its 150-seat A320 plane this year.

Last week, China Southern said it intended to acquire 20 Boeing 737-800 jetliners and two 747-400 freighter aircraft by entering into finance leases with third parties. The acquisition is subject to Chinese government approval.

China Southern said it would enter the 10-year-term finance lease contracts for the aircraft between 2002 and 2005. It said Boeing was one of the parties to the leases and the others were not connected with the airline.

The 20 737-800 aircraft would replace 20 existing 737 series aircraft now flown by China Southern under operating leases.

Wang said China Southern plans to sell another Airbus plane and lease it back in the second half of this year.

Chief Financial Officer Xu Jiebo said the deal would likely bring a gain of over 18 million yuan to China Southern, which booked one-off gain of 17.66 million yuan into its interim 2001 net profits by selling one Airbus 320-200 and leasing it back in the first half.

China Southern said on Wednesday its interim 2001 net profits fell 42 percent year on year to 201.49 million yuan from 347.97 million yuan in the same period last year due largely to increased fuel prices.

China Southern shares ended up 7.14 percent at HK$1.95 on Thursday. The stock had lost more than 12 percent earlier in the week on expectations of poor earnings.

08-23-2001, 10:25 AM	#1
Gordon Werner Insane Collector Join Date: Jun 1998 Location: Somewhere else Age: 37 Posts: 2,059	China Southern has no plans to acquire Airbus jets China Southern has no plans to acquire Airbus jets HONG KONG, Aug 23 (Reuters) - China Southern Airlines, the country's largest carrier which said this month it would acquire 20 Boeing planes, said on Thursday it has no plans to buy Airbus jets. "We have no plans to increase the number of our Airbus planes," vice chairman and president Wang Changshun told reporters at an interim results briefing but declined to give further details. At the end of June 2001, the Guangzhou-based airline had 110 aircraft, including 90 Boeing planes and 20 Airbus planes. Airbus SAS said on Wednesday China will probably order between 30 and 50 of its 150-seat A320 plane this year. Last week, China Southern said it intended to acquire 20 Boeing 737-800 jetliners and two 747-400 freighter aircraft by entering into finance leases with third parties. The acquisition is subject to Chinese government approval. China Southern said it would enter the 10-year-term finance lease contracts for the aircraft between 2002 and 2005. It said Boeing was one of the parties to the leases and the others were not connected with the airline. The 20 737-800 aircraft would replace 20 existing 737 series aircraft now flown by China Southern under operating leases. Wang said China Southern plans to sell another Airbus plane and lease it back in the second half of this year. Chief Financial Officer Xu Jiebo said the deal would likely bring a gain of over 18 million yuan to China Southern, which booked one-off gain of 17.66 million yuan into its interim 2001 net profits by selling one Airbus 320-200 and leasing it back in the first half. China Southern said on Wednesday its interim 2001 net profits fell 42 percent year on year to 201.49 million yuan from 347.97 million yuan in the same period last year due largely to increased fuel prices. China Southern shares ended up 7.14 percent at HK$1.95 on Thursday. The stock had lost more than 12 percent earlier in the week on expectations of poor earnings.