$9.9 billion! After China Eastern Airlines and Air China, China Southern Airlines will also buy 100 C919 aircraft

National Business Daily

2024-04-29 20:42Published on the official account of Sichuan Daily Economic News

Edited: Huang Sheng

On the evening of April 29, China Southern Airlines (600029. SH, share price of 5.66 yuan, market value of 102.56 billion yuan) announced that it entered into an agreement with COMAC to purchase 100 C919 series aircraft from COMAC, which will be delivered to the company in phases from 2024 to 2031.

Image source: Daily Economic News data map

According to the announcement, according to the information provided by COMAC, the catalogue price of a C919 family aircraft is US$99 million, and the total catalogue price of these aircraft is about US$9.9 billion. The list price includes the price of the airframe and the price of the engine.

The total consideration for the acquisition is denominated in US dollars and paid in cash in RMB. The total consideration will be paid to COMAC in instalments based on the respective delivery schedule of each aircraft from 2024 to 2031.

This is another large order of 100 aircraft placed by domestic airlines to COMAC.

On the evening of April 26, Air China (601111. SH, share price of 7.41 yuan, market value of 122.959 billion yuan) announced that the company signed an agreement with Commercial Aircraft Corporation of China (hereinafter referred to as "COMAC") to purchase 100 C919 aircraft from COMAC, which are scheduled to be delivered in batches from 2024 to 2031. According to the latest catalogue prices provided by COMAC, the base price of the aforementioned 100 C919 aircraft is about $10.8 billion.

In September 2023, China Eastern announced the purchase of 100 C919 aircraft from COMAC, which is also scheduled to be delivered in batches from 2024 to 2031. The difference is that China Eastern Airlines ordered 100 C919 aircraft (basic type), while Air China purchased C919 aircraft (extended range type) this time. There was also a difference in the price of the aircraft, which at that time was about $9.9 billion in total list price for the purchase of aircraft by China Eastern.

This is a photo of the C919 aircraft about to make its maiden flight on the tarmac of Shanghai Hongqiao Airport (taken on May 28, 2023). (Photo source: Xinhua News Agency)

In addition to these large orders, in February 2024, on the opening day of the Singapore Airshow, Tibet Airlines signed an order with COMAC for 40 C919 and 10 ARJ21 aircraft. The C919 prototype is one of the important models of the serial development of the C919 aircraft, which meets the transportation requirements of the plateau area by shortening the fuselage and implementing plateau modification on the basis of the C919 basic model. The number of seats is 140 to 160, and the take-off and landing performance meets all plateau airports in China.

In addition, in April 2023, HNA Aviation Group signed a framework order agreement with COMAC for 100 C919 and ARJ21 aircraft. On the same day, HNA Holdings (600221. SH) announced that its holding subsidiary, Urumqi Airlines, plans to purchase 30 C919 aircraft from COMAC. However, the specific content and progress of the project still need to be subject to the subsequent purchase agreement.

According to the official website of COMAC, as of February this year, 4 C919s have been delivered, safely transporting more than 110,000 passengers, and batch production and serial development are steadily advancing.

Daily Economic News Comprehensive Public News, Daily Economic News (Reporter: Yang Yu)

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