(Yicai) April 30 -- Airbus has secured an order from state-owned China Southern Airlines and its affiliate Xiamen Airlines with a combined sticker price of USD213.8 billion, winning its sixth large order from Chinese carriers in less than half a year after four in December and one last month.

China Southern put in an order for 102 aircraft from Airbus' A320neo family, while Xiamen Airlines ordered 35 of the same planes, the former announced yesterday. The deliveries for the first will start in 2028 and for the latter in 2029, with both running through 2032, it added.

Airbus will offer substantial discounts on the list prices, which cover the airframe and engines, Guangzhou-based China Southern noted, adding that the jets will help the two airlines maintain steady capacity expansion, optimize fleet structure, and capture growth opportunities brought by economic development.

In a separate announcement, China Southern unveiled a planned private placement of shares to raise no more than CNY150 billion (USD20.7 billion), with CNY105 billion to contribute to buying the new planes and the rest to replenish working capital. Controller China Southern Air Holding Group will subscribe for between CNY50 billion and CNY100 billion (USD6.9 billion and USD13.8 billion) of newly issued shares, while other investors have yet to be decided.

The CNY105 billion will go for the purchase of 46 of the 102 new aircraft, covering a part of their actual CNY380 billion cost, according to the placement report. Funding for the remaining planes ordered by China Southern and Xiamen Airlines will be sourced from bank loans, internal capital reserves, and other financing channels.

In addition, China Southern reported a net profit of CNY14.8 billion in the three months ended March 31, compared with a net loss of CNY7.5 billion (USD1 billion) a year earlier, thanks to improved operating conditions and operating revenue rising 10 percent to CNY477.8 billion.

The A320 is one of the world's most-used single-aisle passenger jets, with around 11,300 in service. More than 2,000 fly in China, accounting for nearly half of the country's civil aviation fleet. The A320neo is the next-generation upgrade.

Last month, China Eastern said it put in an order for 101 aircraft from Airbus' A320neo family, including the A320neo, A321neo, and A321XLR, with a sticker price of USD15.8 billion. The jets will replace 53 A320s, which will exit its fleet because of expiring leases or aging, it noted.

In addition, Airbus received four big orders from Chinese airlines at the end of last year. On Dec. 29, Juneyao Airlines and Spring Airlines announced orders for 25 A320 and 30 A320neo worth a total of USD8.2 billion. The day after, Air China said it had put in an order for 60 A320neo valued at about USD9.5 billion, while China Express Airlines said it ordered three A320 costing up to USD420 million.

Shares of China Southern [SHA: 600029] fell 0.9 percent to CNY5.45 (80 US cents) apiece as of 10.40 a.m. in Shanghai today. Its Hong Kong-listed stock [HKG: 1055] dropped 3.7 percent to HKD3.95 (50 US cents).

A private placement, usually done to raise capital for specific corporate purposes, can depress a listed firm's shares through equity dilution, as the ownership percentage and earnings per share of existing shareholders fall if they are not involved in the placement.

Editor: Martin Kadiev