(Rewrites, adds detail.)
By Simon Zekaria
LONDON--Air China Ltd. (AIRYY) Thursday said Shenzhen Airlines
is buying 46 737 planes from U.S. aerospace giant Boeing Co. (BA)
for $4.3 billion, as China's flagship airline adds to its fleet
amid rising demand for regional carriers across the country's
booming travel market.
The airline will take delivery of the aircraft between 2016 and
2020, Shenzhen Airlines' parent company Air China said in a
statement, without providing more details on the order.
The transaction with the U.S. aerospace giant, paid in cash
installments, will be funded through cash generated from Shenzhen
Airlines' business operations, commercial bank loans and other
financing instruments, Air China said. It added the deal isn't
expected to have a material impact on the cash flow and operation
of the group.
The order will increase Shenzhen Airlines' capacity by 6% from
the end of 2014, said Air China.
Write to Simon Zekaria at simon.zekaria@wsj.com
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