China Eastern issues $1bn RFP for Airbus and Boeing deliveries

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

China Eastern Airlines has approached financiers with a request for proposal (RFP) covering a total of 22 new Airbus and Boeing aircraft.

The RFP is estimated at $1 billion and covers deliveries in the second-half of this year and the first quarter of 2014, say banking sources.

The Chinese carrier is seeking multi-currency proposals in US dollars, euros and Japanese yen for commercial debt, Japanese operating leases with call options (JOLCO) and export credit agency (ECA) support.

The financing will cover 10 Boeing 737 Next Generation aircraft. China Eastern is expected to receive five 737-800s in the second-half of this year and two in the first quarter of 2014. This year's deliveries include two 737-800s in September, one in October and two in December. Next year, China Eastern will receive two 737-800s in March.

As part of the RFP, the Chinese carrier will also take delivery of two 737-700s in September and November this year and one unit in February 2014.

The RFP includes five new Airbus A330-200s with deliveries expected in October, November and December as well as January and March 2014.

China Eastern is also looking to finance seven Airbus A320 family aircraft, including two A319s delivering in October and January and two A320s in November and March. One A321 will deliver in October, followed by two units in February and March 2014.

Bids are due 14 June 2013 as China Eastern is expected to short list in the second-half of June. Mandates are expected to be awarded by mid-July.