Shanghai Airlines to loan USD400-M from China Development Bank

Shanghai Airlines is seeking a loan amounting to USD 400 million from the China Development Bank to boost the number of its fleet. The Chinese air carrier announced on February 18th that it will use the loan to buy additional aircraft beginning in 2008 until 2010. In a statement filed recently with the Shanghai Stock Exchange, the airline said that the term of the loan will be up to three years. Part of the money will be used for the advance purchase of 22 aircraft. Shanghai Airlines earlier placed an initial order of nine B787 jets from Boeing. According to the announcement previously made in December by the Chairman of Shanghai Airlines, the airline is considering buying additional A330 medium-range aircraft from Airbus. The purchase of additional aircraft will accelerate the expansion of the carrier’s international network. Shanghai Airlines is scheduled to commence daily flights to the United States and the German city of Hamburg this year.