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Airbus lands $10.2bn deal for aircraft in China

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Thinkstock Images

Thinkstock Images

Airbus Group has won a pledge from China Aircraft Leasing Group Holdings for the purchase of 100 planes valued at $10.2bn as the Chinese lessor seeks assets to power expansion.

The order is for 100 single-aisle A320 planes, a combination of existing models and future neo versions with new engines, the Tianjin, China-based company said. A firm contract may come come before the end of the month, and before the year's end at latest, said Jens Dunker, who heads aircraft trading at the lessor.

Leasing companies are boosting their fleets and expanding across Asia as the region is set to overtake the US as the world's largest plane market, spurred by demand from China, India and Southeast Asia.

"There is huge potential demand globally," Dunker said in an interview in Hong Kong. "Airlines are now prepared to wait six to eight years for an aircraft. Some 80pct of current- generation planes need to be replaced by new aircraft in the coming years." (Bloomberg)

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