(Bloomberg) -- Hainan Airlines Holding Co. plans to purchase 40 aircraft from planemaker Commercial Aircraft Corp. of China for as much as $1.52 billion combined to beef up its fleet and expand its business.
Under the deal, the Shanghai-listed airline’s low-cost carrier unit Urumqi Air will sign an agreement with Comac, as the Chinese planemaker is better known, for 40 ARJ21-700 jets at $38 million each, according to a filing to the Shanghai stock exchange. The planes are scheduled to be delivered in batches from 2025 to 2032.
Hainan Airlines’ board of directors has approved the deal, which still needs the green light of its shareholders and the Chinese regulators, the airline said. It added it plans to ask for bank loans to help fund the purchase.
Comac, which has few clients abroad, is known for its C919. The plane competes directly with Airbus SE’s A320 and Boeing Co.’s 737 but isn’t certified by other nations’ safety regulators and therefore can’t fly commercially outside of China.
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