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Hong Kong Aviation to Purchase $7.7 Billion of Airbus Aircraft

Hong Kong Aviation Capital Co., the lessor whose shareholders include China’ HNA Group, signed an order for 70 Airbus Group NV single-aisle planes worth $7.7 billion in list prices amid a travel boom across Asia.

The deal is for 40 A320neos and 30 A321neos and comes after the two signed a memorandum of understanding at the Paris Airshow last year, Airbus said in an e-mailed statement today. This is Hong Kong Aviation’s first direct order from a manufacturer, it said. Deliveries start 2019.

Airlines are adding more fuel-efficient planes such as the neos from Airbus and Max models of Boeing Co. as higher oil prices have prompted them to cut costs. Boeing predicts the Asian region will drive an increase in commercial aircraft sales to $5.2 trillion over the next 20 years, as China overtakes the U.S. as the world’s largest aviation market.

Hong Kong Aviation has more than 50 planes on its fleet, Airbus said in its statement. Its customers include Emirates and Qantas Airways Ltd., according to its website.

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