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China Eastern ascends with Airbus deal
By Chen Qide (China Daily)
Updated: 2004-10-25 08:53

China Eastern Airlines yesterday received its first A321-200 aircraft, expanding its fleet for home and abroad flights.

The aircraft, with 20 business-class seats, costs an average of US$68 million each.

China Eastern has ordered four A321-200 aircraft from Airbus with the second to be delivered on October 28 and the other two in August and September of 2005, said Luo Chaogeng, newly-appointed general manager of China Eastern Airlines Co Ltd.

The new plane will be used on Shanghai to Beijing routes. Later on, the imported A321-200 aircraft will serve as flights on the air routes from Shanghai to Hong Kong and Busan, Luo said.

"By using the new aircraft, we can further meet our growing market demands," he said. "It has more seats than A320 planes," he said.

The A321, together with A320, A319 and A318, constitute the world's most profitable single-aisle aircraft family, and provides operators with the highest degree of commonality and economy, combined with unmatched comfort for passengers, said Laurence Barron, Airbus China President.

China Eastern operates the largest A320 Family fleet in China, with more than 60 A320s and A319s.

He said China Eastern signed a contract in Beijing with Airbus in Beijing on October 9 for the purchase of 20 Airbus A330-300s, becoming the first customer of the type in the Chinese mainland.

"We feel privileged that China Eastern has given us a new vote of confidence by selecting more Airbus aircraft," he added.

The contract costs at least US$3 billion, said Barron, adding that the first aircraft will be delivered in January 2006.

The delivery of the 20 aircraft will be completed in August 2008 to reinforce the fleet.

"Purchasing a large number of aircraft from Airbus is the carrier's strategy to sharpen its competitive edge at home and abroad," said Luo.

At another development, the airlines is co-operating with Singapore Science and Space Flight Co Ltd to set up a joint venture with an investment of US$98 million to use advanced technology to provide maintenance for its fleet.

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