June 15, 2017 / 12:40 AM / 2 months ago

China Aircraft Leasing buys 50 Boeing aircraft for $5.8 billion

A new Boeing 737MAX sits parked under a canopy at Boeing Field after coming off the production line in Seattle, Washington, May 9, 2017. Picture taken May 9, 2017.Jason Redmond - RTS163CY

HONG KONG (Reuters) - China Aircraft Leasing Group Holdings Ltd (1848.HK) said it would buy 50 Boeing 737MAX series aircraft from Boeing (BA.N) for an aggregate list price of $5.8 billion, to meet demand for more efficient aircraft while expanding its fleet portfolio.

The aircraft lessor's unit had agreed to buy the Boeing aircraft, in a deal to be settled from internal resources and loans and other borrowings, the company said in a filing to the Hong Kong bourse on Thursday.

China Aircraft, which now owns and manages 87 aircraft, said the actual purchase price would be lower than the list price as Boeing would grant price concessions as per industry practice.

The Boeing aircraft will be delivered in stages up to 2023.

In April, China Aircraft Leasing had agreed to buy aircraft from Airbus (AIR.PA) in a bid to match customer demand under dynamic market conditions.

Reporting by Donny Kwok; Editing by Stephen Coates

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