Loans News
- Southern Air gets US$1.3b credit
Date: 16-Mar-2007 Sources: (Shenzhen Daily)
CHINA Southern Airlines Co., the nation's biggest carrier, on Wednesday secured a 10 billion yuan (US$1.3 billion) credit facility from China Construction Bank to help fund its fleet expansion plans.
'It will mainly support aircraft purchases,'' Su Liang, the Shanghai and Hong Kong-listed airline's company secretary, said.
China Southern plans to expand its fleet about a quarter this year to more than 360 planes as it seeks to tap the country's rising travel demand. The airline is also adding at least 10 international routes ahead of the Beijing Olympics Games next year.
'The airline needs a larger network to secure its market share in the years ahead,'' said Zhu Anping, an analyst at Shenyin Wanguo Securities Co. in Shanghai. 'China Southern is betting on increasing passenger volume during the 2008 Olympic Games and afterwards.''
China Southern had an order backlog of 34 new Boeing Co. planes and 64 new Airbus SAS planes at the end of February, according to data on the aircraft-makers' Web sites.
The airline may also order as many as 12 Boeing 777 freighters, costing as much US$2.88 billion, deputy general manager Liu Xiaoxiao said Jan. 26.
Its fleet currently comprises more than 300 passenger and cargo planes. It plans to add services from Guangzhou to 10 countries including Japan, India and Nigeria this year, it said Feb. 14.
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