Air China closes deal for 23 Airbus A320s

Beijing -- Air China Ltd., China's second-largest commercial airline, has finalized a deal to buy 23 Airbus A320 planes, the state-owned carrier said Wednesday.

The deal, part of a 150-jet commitment the Beijing government made to France's Airbus SAS in October, calls for the short- to medium-range commercial passenger aircraft to be delivered between January 2009 and December 2012, the airline said.

Air China negotiated a discount on the order's $1.41 billion list price, it said. Such discounts are typical among commercial aircraft customers.

Air China said it expected the new plans to increase its operating capacity by nearly 6 percent and improve service to and from the southwestern Chinese city of Chengdu, one of the country's most important economic centers and transportation and communication hubs.

Copyright 2007 by United Press International.