DALLAS — Hainan Airlines Holding Co. (HU) has entered into an agreement to acquire 40 aircraft from Commercial Aircraft Corp. of China (COMAC) for a combined total of up to US$1.52 billion.

Specifically, the Shanghai-listed airline’s low-cost carrier (LCC) unit, Urumqi Air (UQ), will enter into a contract with COMAC to purchase 40 ARJ21-700 jets at a price of US$38 million each. The aircraft are scheduled to be delivered in batches between 2025 and 2032.

According to a bnnbloomberg.ca report, HU’s board of directors has green-lit the acquisition, which requires the approval of shareholders and Chinese regulatory authorities. HU has indicated its intention to seek bank loans to finance the purchase.

The ARJ21 is the first short-medium range turbofan regional aircraft independently developed by China. The jet has a layout of 78 to 97 seats, and a range of 2,225 to 3,700 kilometers.

Hainan Airlines Aircraft Fleet

Hainan Airlines operates a diverse fleet of both narrow-body and wide-body aircraft. Here’s an overview of their current fleet:

Wide-body Aircraft:

• Boeing 787 Dreamliner: 38 aircraft in total, including 10 Boeing 787-8 Dreamliners and 28 Boeing 787-9 Dreamliners.
• Airbus A330: 28 aircraft, comprising 8 Airbus A330-200, 20 Airbus A330-300, and 2 Airbus A350 XWB.
  

Narrow-body Aircraft:

• Boeing 737: 150 aircraft in total, including 133 Boeing 737-800 and 17 Boeing 737-8.
• Airbus A320 family: 8 aircraft, including 7 Airbus A319-100 and 1 Airbus A320neo.

Hainan Airlines, the largest civilian-run and majority state-owned air transport company in the People’s Republic of China, ranks fourth in terms of fleet size and tenth in terms of passengers carried, making it the fourth-largest airline in Asia.