Air China intends to place an order with COMAC for 11 ARJ21 regional aircraft and six C919s, it said in an investor announcement on December 22. The aircraft are scheduled for delivery in 2024 and 2025. The order is valued at $1.1 billion (RMB 75.71 billion) in list prices, but the carrier has negotiated a discount.
The airline is citing the recovery and expected growth of air travel as the reason for placing this latest order. This follows previous orders for five C919s plus 15 options and for 35 ARJ21s. “The introduction and actual operation of 17 aircraft will further enhance the company’s fleet size and carrying capacity. Expand the transportation capacity of major routes, improve the company’s route network, and increase route revenue. At the same time, newly introduced aircraft,” Air China says in the filing.
The new aircraft will also help to reduce the airline’s fuel consumption, maintenance costs, and will help to improve its profitability and market competitiveness. Air China is partly using proceeds from a capital raise to finance the aircraft while the remainder will help it bolster the working capital.
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