Air China agrees to purchase 60 Airbus A320NEO series aircraft

Air China announced that the company and AIE entered into the Air China Aircraft Purchase Agreement with Airbus (EADSY) Company, pursuant to which the company has agreed to purchase 60 Airbus A320NEO series aircraft from Airbus. “The list price of the Airbus Aircraft to be acquired by the Company, in aggregate, is approximately $9.53 billion. Airbus Company has granted to the Company considerable price concessions with regard to the Airbus Aircraft. These concessions will take the form of credit memoranda which may be used by the Company towards the final price payment of the Airbus Aircraft to be acquired by the Company or may be used for the purpose of purchasing goods and services from Airbus Company. Such credit memoranda were determined after arm’s length negotiations between the parties and as a result, the actual consideration for the Air China Aircraft Purchase is lower than the aircraft list price mentioned above,” the company stated in a notice to the Hong Kong stock exchange.