(Yicai Global) Aug. 24 -- Spring Airlines Co. [SHA:601021], a low-cost Shanghai-based carrier, plans to raise up to CNY4 billion (USD601 million) through private placement for purchasing 10 Airbus A320 aircraft and one A320 flight simulator.
They also plan to purchase a further 11 of the same model, to effectively reduce operating and management costs. The A320 family has the lowest operating costs of any single-aisle aircraft.
The airline currently operates a single fleet of 51 A320s on more than 70 domestic and international routes. The A320 Family is the world's best-selling and most modern single aisle aircraft family.
Spring Airlines also plan to further increase its carrying capacity and expand its fleet, given the growing demand in domestic and overseas aviation markets and the bright prospects of the low-cost aviation market. The purchase of the aircraft and flight simulator will cost CNY6.6 billion (USD991 million) with Spring Airlines funding the shortfall itself.