Nicholas Ionides and Andrew Doyle/SINGAPORE
Air China is considering an offer from Boeing to swap two in-service 747-400s for up to 10 737-700s or -800s. Industry sources say the flag carrier is in talks with the US manufacturer on the deal, which is understood to have been tentatively endorsed by the Chinese Government.
There are suggestions that a final agreement may be delayed, however, as a result of recent tensions between China and the USA.
An Air China source confirms a follow-on 737 order is "under consideration", but will not say how close the carrier is to a decision as it is "a sensitive subject".
Air China already operates seven 737-800s and has a further three on order. It also operates 19 737-300s. Its 747-400 fleet includes six dedicated passenger variants and eight Combis, all of which are powered by Pratt & Whitney engines.
If a deal is concluded to swap 747s for smaller aircraft, it will be the second time Air China has arranged to do so in recent years. In 1999 P&W agreed to buy the carrier's four 747SPs in return for the carrier placing a firm order for eight PW6000-powered Airbus A318s.
Air China is due to start taking delivery of the A318s in 2002. It will be the first operator of the 100-seater in the Asia-Pacific.
Changes to the fleet mix are occurring against a background of new moves to raise capital as the carrier, the country's second largest after Guangzhou-based China Southern Airlines, has revived plans for an overseas stock markets listing and is targeting early 2002 for a flotation in Hong Kong and New York.
The Beijing-based carrier has been meeting with investment banks and hopes to be in a position to list abroad in the first half of next year. Analysts say 2003 is probably more realistic, however, as an overseas listing may not be feasible until a sweeping consolidation exercise among Chinese carriers is completed and the airline shows consistent profitability.
Air China is the only one of the country's so-called 'big three' not listed and a flotation is aimed at raising cash to help expansion.
Source: Flight International
