(Yicai Global) Nov. 7 -- State-backed plane purchaser China Aviation Supplies Holding will purchase 140 airplanes from Airbus for around USD17 billion. The news sparked widespread concern amid the losses Chinese carriers reported recently because of the impact of the Covid-19 pandemic.
China Aviation Supplies will buy 132 A320 planes and eight A350 aircraft, it said on its official website, citing the batch purchase agreement the par signed in Beijing during German Chancellor Olaf Scholz's visit to China on Nov. 4.
The news sparked widespread concern because Chinese carriers reported huge losses in the first nine months of the year due to the impact of the Covid-19 pandemic. China's three major airlines recorded a total net loss of CNY73.8 billion (USD10.2 billion) in the period. Net losses at China Eastern Airlines, China Southern Airlines, and Air China were CNY28.1 billion, CNY17.6 billion, and CNY28.1 billion.
With the gradual recovery of China's air transportation market, the industry is expected to record stable and rapid growth, China Aviation Supplies added, noting that the batch purchase order is a preparation for the future market.
China Aviation Supplies is the largest, neutral, third-party integrated service provider of aircraft procurement and aviation supplies and one of the three aviation support groups in China, according to its website. The firm's main business involves service for aircraft, aviation equipment, technical equipment and airport business, general aviation development, and others.
Editor: Futura Costaglione