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June 21, 2004, Taipei, Taiwan- China Airlines and CALYON, a leading
French bank, today held a joint signing ceremony for a US$ 235 million
financing contract for CAL’s acquisition of three new Airbus A330-300
aircraft. The new aircraft financing is guaranteed by the European
export credit agencies. Mr. Phillip Wei, President of China Airlines,
and Mr. Michel Roy, Senior Country Manager of CALYON, signed the
contract for the two companies. The three new aircraft are to be
delivered in late June, July and December, 2004.
China Airlines ordered 14 A330-300s from Airbus Industrie in
2002, and will take delivery between 2004 and 2007. The A330s
will eventually replace CAL’s A300-600Rs on Asian regional routes
departing from Taipei and Kaohsiung. With 313 seats, the A330
has 18% more capacity than the A300-600Rs. In addition, the A330
aircraft have a high degree of commonality with CAL’s A340 fleet,
which leads to reduced maintenance and flight crew training costs,
and increased pilot productivity.
“We are pleased to entrust CALYON as the manager, underwriter
and security trustee for this financing case,” said Mr. Phillip
Wei in the ceremony. “Continuous support from banks is essential
for our future growth.”
Despite the current high fuel prices, China Airlines has managed
to keep fuel costs low through hedging. As a result, CAL foresees
solid growth in 2004, and expects to post an after tax profit
of NT$ 3.1 billion for the year. The signing of this financing
contract illustrates that China Airlines’ financial performance
and future prospects are highly regarded by international banks.
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