Air China shareholders approve adding 55 Airbus aircraft to group fleet
Key Facts
Air China announced on November 4 that its shareholders had approved two resolutions to add 55 Airbus aircraft to the group fleet, following an extraordinary meeting held on November 3. The first resolution concerns adding 15 A350-900 aircraft to the parent company’s fleet, while the second covers 40 A320-series aircraft for subsidiary Shenzhen Airlines. The vote completed the shareholder approval required for the deal, whose two agreements were signed in July. The agreements also required approval from the relevant government authorities before taking effect. The aircraft split addresses the parent company’s need for widebody aircraft and the subsidiary’s need for A320-series aircraft.
Shares represented by shareholders and their authorized proxies in attendance totaled 13,469,407,658, out of the company’s 20,492,561,030 issued shares. The A350-900 aircraft resolution received 99.9452% of votes, while the A320 aircraft resolution received 99.9321%. The vote results show broad approval of the two separate resolutions, not of a general fleet plan. The agreements were signed on July 17 and then submitted to shareholders as part of the steps to complete the deal. Air China shares closed at 3.69 Hong Kong dollars on November 3, while Airbus shares listed in the United States, under the symbol EADSY, ended the session at 53.82 dollars.
The aircraft’s announced list prices are about 6.09 billion dollars for the A350-900 aircraft and 6.35 billion dollars for the A320NEO aircraft. The A350-900 figure is based on list prices quoted in January 2025, while the A320NEO prices date to January 2024. The company said the actual consideration for the two deals is below list prices after price concessions, but did not disclose their value. The announced figures therefore do not represent a final purchase price disclosed by the company. Each agreement will be paid for in cash in installments, including advance payments and settlement of the balance upon aircraft delivery.
Air China said the two models are among Airbus’s latest and most fuel-efficient aircraft, and that they reduce fuel consumption, emissions and operating costs compared with the previous generation. The company said the aircraft purchases are in line with its plans and market demand, and will help improve fleet composition, route network and capacity planning. Some of the aircraft will be allocated to replace aging aircraft being retired from service. According to the company’s estimate, the A350-900 aircraft could increase the group’s capacity by about 7.1%, and the subsidiary’s capacity by about 4.3%. The estimates are based on the group’s available tonne-kilometers as of December 31, 2025, before any potential fleet adjustments.
A350-900 deliveries are expected in stages between 2030 and 2032, while A320NEO deliveries to Shenzhen Airlines are expected in stages between 2029 and 2032. This schedule means the aircraft will enter service gradually over several years, rather than immediately upon shareholder approval of the agreements. Payments will be funded through internal cash, commercial bank loans and other financing methods. The board said it does not expect the deal to have a material impact on the group’s earnings, assets or liabilities. It also considered working capital sufficient for the group’s current needs over the twelve months following the date of the circular issued on September 24, 2026.