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China Southern to raise over $2.8 billion to fund new aircraft purchase

China Southern to raise over $2.8 billion to fund new aircraft purchase

In a filing with the Shanghai Stock Exchange on May 31, China Southern Airlines stated that it intended to raise up to CNY17.5 billion yuan (USD2.46 billion) through a private placement of shares, with some of the funds going towards the purchase of fifty A320neo aircraft.

The state-owned airline will receive CNY5.25 billion (USD740 million) of the above amount for supplemental working capital, while CNY12.25 billion (USD1.72 billion) would be utilized to “introduce” the fifty new twinjets. The company “will adjust the funds that are raised” if the actual amount raised after expenses is less than the entire anticipated investment.

The Guangzhou-based airline announced on the same day that it is prepared to offer CNY17.5 billion (USD2.5 billion) in new Shanghai shares and HKD2.9 billion (USD370 million) in new Hong Kong shares to chosen investors.

China Southern Airlines orders 20 Airbus A350 XWBs(Opens in a new browser tab)

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A private placement, in which additional stock is offered to certain investors to generate money, reduces the number of outstanding shares of a listed firm, frequently resulting in a temporary drop in the stock price.

According to China Southern, over CNY12.3 billion from the Shanghai share sale will be utilized to purchase 50 aircraft from the Airbus A320 Neo family, with the remaining funds being used to increase working capital. The funding for the general operations of the company will now include the profits from the Hong Kong private placement.

According to China Southern, Airbus A320 Neo aircraft are among the most popular short- and medium-haul airplanes in the world. According to the catalog pricing on the European aircraft manufacturer’s website, which is dated January 2020, the 50 aircraft will cost approximately USD 6.4 billion.

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Airlines

Qantas Announces New Non-Stop Direct Flights from Perth to Paris

Qantas Announces New Non-Stop Direct Flights from Perth to Paris

Qantas has launched new direct flights between Perth and Paris, reconnecting Australia and France for the first time in 20 years.

This new route reduces the travel time between the two cities by approximately three hours and stands as the longest non-stop flight to France globally.

Initially, the flights will operate four times per week during the busy European summer and the Olympic and Paralympic periods, before scaling down to three services per week from mid-August. This new service will provide an additional 75,000 seats between Australia and Europe annually.

Oldest Qantas A380 returns to service after being in storage : 16 years +:Click here

Perth will serve as the gateway to Paris for travelers from Sydney, Melbourne, Brisbane, and other major Australian cities. French tourists will also benefit from seamless connections to over 60 destinations across Australia, allowing them to explore the country’s natural wonders.

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The flights will be operated using Qantas’s Boeing 787-9 Dreamliner, which is designed for long-haul travel. Passengers will enjoy large windows, high cabin humidity, and mood lighting to help them feel refreshed upon arrival.

To celebrate the new Paris route, Qantas has introduced several customer initiatives. These include limited edition Martin Grant-designed pyjamas with matching amenity kits and Neil Perry-curated menus for the Business cabin, featuring classic French dishes like Bouillabaisse of snapper and Skull Island prawns and a French 75 cocktail.

The Top 5 Films Seen on a Qantas Flight This is the listing:Click here

Additionally, a special selection qantas movies list celebrating French cinema, including films such as Amélie and Midnight in Paris, will be available on the international inflight entertainment system throughout July. qantas inflight entertainment movie list 2024.

This route launch follows a significant agreement between Qantas and Perth Airport, aiming to expand the airline’s western hub. This agreement, along with the Group’s fleet renewal program, is set to add 4.4 million additional seats to and from Perth by 2031.

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