China Eastern will purchase as scheduled 20 passenger aircraft from Airbus Industrie to expand its fleet in spite of an Air China Boeing plane crash in South Korea on Monday.
China Eastern Airlines Corp Ltd Chairman Ye Yigan and Airbus Chief Commercial Officer John Leahy Tuesday signed the contract worth US$1.1 billion in Shanghai, where China Eastern is based.
Airbus, the European consortium which has manufacturing facilities in France, Germany, Spain and Britain, will deliver the 150-seat A320 jets - Airbus' fastest selling product - beginning next year. The delivery is scheduled to complete in 2005.
The new orders from China will help strengthen the European aircraft manufacturer's position in competing with Boeing for the Chinese market.
By the end of March, 168 Airbus passenger jets were in service on the Chinese mainland,
Hong Kong and Macao. Of them, 96 were A320 family aircraft.
The fleet is expected to expand as Airbus said it had more orders from Chinese clients.
According to agreements signed before, Airbus will deliver China Eastern two 124-seat A319 jets this year and five 400-seat A340-600 jets in 2003 and 2004.
Leahy described the purchase as "a further vote of confidence" in Airbus products by the Chinese firm.
Liu Shaoyong, China Eastern Airlines' president, said his firm chose Airbus jets for their commonality with its existing fleet.
Airbus boasted the commonality as one of its main advantages in global competition. The A320 family, comprised of the A318, A319, A320 and A321, showcases the commonality that offers operators advantages such as reduced maintenance and training costs.
The newly ordered aircraft are to be powered by engines made by CFM International.
The deal signalled that China will not step back from its aircraft fleet expansion plans after the Air China Boeing 767-200 jet crash.
China Eastern Airlines, currently one of China's three largest airline groups, has been authorized by the central government to acquire smaller Chinese airlines and grow into a global competitor.
This purchase is believed to be part of its restructuring efforts, which Premier Zhu Rongji said on Monday should not be halted by the latest accident.
China Eastern has air routes to more than 40 domestic destinations and over 20 cities abroad.
