Airline to buy, and sell, jets in Boeing deal
Source: Agencies |
May 1, 2012, Tuesday
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Print Edition
Print Edition
CHINA Eastern Airlines Co is buying 20 Boeing 777 jets worth nearly US$6 billion while also selling five Airbus A340s to the US plane maker, the Shanghai-based airline said yesterday.
The airline said it was selling the Airbus A340-600s, worth US$708 million, to Boeing because they had high operating costs and "relatively weak route competitiveness."
The Airbus jets are just over eight years old, on average, and fly long-haul routes to New York and Los Angeles.
China Eastern said that the list price of the 777-300s was US$5.94 billion but it negotiated a discount.
Airlines routinely get discounts, and the final selling price is rarely disclosed.
Boeing spokesman Yukui Wang wouldn't comment on the deal to buy China Eastern's second-hand jets.
But he said the company has in the past bought jets made by other plane makers and sold them to other companies.
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