China Eastern Airlines to raise up to USD2.2bn to expand fleet and replenish capital

11 July, 2018

China Eastern Airlines announced (10-Jul-2018) plans to issue up to 1.6 billion A shares to raise CNY11.8 billion (USD1.8 billion) and 517.7 million H shares to raise HKD3.55 billion (USD452.3 million) through private share sale to fund fleet purchase and to replenish working capital. CNY11.8 billion (USD1.8 billion) of proceeds will be used to fund the purchase of

  • 18 aircraft: 2 Boeing 737 MAX 8, 3 787-9s, 10 A320s, 2 A350-900s;
  • 15 flight simulators: 1 A350, 1 787, 1 A320neo, 3 737 MAX, 4 737 and 5A320;
  • 20 spare engines: 2 GEnx-1B (full), 2 GEnx-1B (core), 3 Trent XWB-84, 8 LEAP-1A26 and 5 LEAP-1B.

The remaining USD452 million will be used to replenish working capital. The simulators will be purchased from CAE, L-3 and Flight Safety. The spare engines will be purchased from GE, Rolls-Royce and CFM. [more - original PR - Chinese] [more - original PR - Chinese - II] [more - original PR - III]