Air China to lease jumbos

Agence France Presse

Beijing, February 4:

Air China is negotiating the lease of two A380 superjumbos to serve the Beijing Olympics, Airbus China President Laurence Barron was quoted as saying on Friday. “We expect a deal to be hammered out between the two sides so that at least two airliners can use the A380 to serve the 2008 Beijing Olympics,” Barron told the China Daily. The European aviation giant, locked in fierce competition with US rival Boeing, last week inked a deal to sell five of the double decker planes to China Southern Airlines in a deal worth some $1.4 billion.

That contract marked the first A380s to be sold to China, which is expected to be one of the world’s most important air transport markets in the decades to come. The Air China lease was being negotiated through the International Lease Finance Corp., Barron, who could not be reached Friday, told the newspaper. According to Barron, Airbus and Air China enjoy close business ties, evidenced by the Chinese flag carrier placing orders for 20 A330-200s in January and six A319s last year. “These are all near-term transactions. We are also talking about other long-term deals with Air China, including the possible purchase of the A380 double-decker,” he said. Barron admitted such direct sales could be a long way off. “It is still early to talk about the possibility. Our priority now is to wait and see whether the negotiations between ILFC and Air China can bear fruit,” he said. Air China refused to comment Friday although the China Daily cited an official from the airline as saying it was still hesitant about buying the A380. The official did not say why.

Airbus is also hoping China Eastern Airlines will purchase the A380. “It may take some time for China Eastern to make a decision but we believe airlines such as China Eastern will be interested in the giant plane as their international business develops further in the future,” Barron said. Airbus last month officially unveiled the A380, the world’s biggest civil aircraft, in a glitzy ceremony in Toulouse, France.