This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China to Make Fewer Plane Purchases

BEIJING -- China plans to tell its troubled state-owned airlines to delay new aircraft purchases because of a travel slowdown amid economic turmoil, a news report said Friday, a move that could hurt U.S. and European aircraft makers.

Regulators also might put a moratorium on new purchases, Hong Kong's South China Morning Post newspaper said, citing Hu Bin, general manager of Xiamen Airlines, a mainland carrier.

A spokeswoman for the Chinese aviation regulator, the Civil Aviation Administration of China, said she could not confirm the report. She refused to give her name.

A cutback in Chinese purchases could hurt global aircraft suppliers Boeing (BA) and Airbus Industrie, which are looking to China's booming travel market to help drive future sales.

Chinese carriers have been squeezed by high oil prices and falling passenger and cargo revenues. State-owned airlines had total losses of about 4.2 billion yuan ($615 million) in the first 10 months of this year, according to the government.

Regulators are expected decide on changing delivery schedules at a meeting early next month, Hu said.

Two of China's three major carriers have turned to the government for financial aid. China Southern Airlines (ZNH) said this week it will receive a 3 billion yuan ($440 million) capital injection from the government, and China Eastern Airlines (CEA) said it's seeking similar help.

In the most recent major aircraft order, the third carrier, Air China, said in July it was buying 45 Boeing jetliners, one of China's biggest purchases to date. The list price for the aircraft is $6.3 billion but Air China said its final price would be lower.

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs