On the evening of December 22, Air China (601111SH, share price 717 yuan, market value 1161600 million yuan) announced that it intends to issue ** to the controlling shareholder China Aviation Group, and the total amount of funds to be raised will not exceed 6 billion yuan. Among them, 4.2 billion yuan is planned to be used to introduce 17 aircraft, including 6 C919 and 11 ARJ21, which are expected to be delivered from 2024 to 2025, and 1.8 billion yuan is planned to be used to replenish liquidity.
Air China said that the recovery trend of the civil aviation industry is obvious, with domestic routes exceeding the level of the same period in 2019, and international and regional routes have also entered a rapid recovery range. Reasonable fleet size and age structure are the key prerequisites for the company to further improve the layout of domestic and foreign route networks in the futureThe introduction of 17 aircraft will further enhance the company's capacity, optimize the fleet structure, strengthen the safety and security capabilities, and enhance the core competitiveness of the company's main business.
According to Air China's monthly operating data announcement, as of the end of November 2023, the company operated a total of 900 aircraft. At the end of December 2022, Air China operated a total of 762 aircraft.
In terms of aircraft**, according to the aforementioned announcement, the total catalogue price of the 17 aircraft to be introduced this time is 106.6 billion US dollars, equivalent to about 75 yuan$7.1 billion, but the actual contract** was determined by the parties after negotiation on the principle of arm's length, which was lower than that contained in the catalogue**. Among them, the catalog unit price of C919 (2024) is 10.8 billion US dollars, ARJ21's (2024) catalogue unit price is 0$3.8 billion.
As of the end of September 2023, Air China's debt-to-asset ratio remained high at 8878%。Air China said in the announcement that the private placement will partially supplement the company's working capital, enhance the company's capital strength, meet the company's business development capital needs, and help the company's healthy and sustainable development.
National Business Daily.