China Eastern Airlines, a major Chinese airliner, has signed an agreement with global aircraft maker Airbus for the purchase of 70 Airbus A320NEO planes for 6.37 billion U.S. dollars.
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The planes will be delivered starting from 2018 till 2020. The airliner will pay in installments, according to a company statement released Saturday by the Shanghai Stock Exchange.
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The company said that it will finance the deal through income from business operations, bank loans, and other financing tools. It said the purchase will not have a major impact on liquidity and its business operations.
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It said that the new planes aim to cater to the rising demand for medium and short-distance trips.