Airlines seek loans
24 March 2006
Air China needs a US$750 million loan with which to buy 14 aircraft in the largest-ever deal involving a Chinese carrier, the Standard of Hong Kong reported. HSBC France is to manage the two-part 10-year loan as it will use a French tax lease that will cut taxable income. Singapore's DBS Group will pay out US$550 million of the loan, with the remainder covered by China's four leading banks - Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China. China Southern is expected to secure a US$400 million loan with which to buy 13 planes. China Eastern Airlines is looking for US$374 million for 11 new aircraft.