(Yicai Global) April 27 -- China Southern Airlines Co. [SHA:600029] yesterday announced its plan to order 20 A350-900 aircraft from Airbus SE [FP:AIR] in a deal worth around USD6 billion.
China Southern will take delivery of the planes between 2019 and 2022 in batches, six each in 2019 and 2020, and four each in 2021 and 2022.
China Southern plans to pay for the aircraft using its own funds, loans from commercial banks and with capital raised from other sources. Payment will ensue in installments, and thus is not expected to greatly affect the company's cash flow and business operations.
The purchase will raise the airline's passenger capacity by about 12.1 percent.