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Fri, Jan 22, 2010

China Southern Plans To Buy 20 Airbus A320s

Deliveries Expected To Begin In 2011

China Southern Airlines said Thursday it had agreed to buy 20 Airbus A320 jets, and expects to return to profitability based on falling fuel costs and strengthening passenger demand. The catalogue price for each aircraft is 76.9 million dollars, but the actual payment will be significantly lower, the nation's biggest carrier by fleet size said in a statement.

Under the agreement signed Wednesday, the planes are due to be delivered from 2011 to 2013, the carrier said in a statement to the Shanghai Stock Exchange. The acquisition will increase capacity, "thus enhancing the competitiveness and core competence of the group," it said.

China Southern said it would return to profitability for 2009 after posting a net loss of 482.9 million yuan (70.7 million dollars) in 2008. The carrier did not give specific figures for 2009 earnings in the preliminary announcement. It is due to release its full 2009 financial results in April.

FMI: www.chinatraveldepot.com/chinaflights/index.aspx

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