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Air China cuts back on capex

By Joey Kwok and Lillian Liu (China Daily)
Updated: 2009-04-22 08:01

Air China, the country's flag carrier, said it will further trim its capital expenditure by up to 30 percent after reporting a turnaround in the first quarter of this year, thanks to the sharp fall in fuel price and extraordinary gain.

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Air China said in Hong Kong that it plans to cut capital spending to between 9 billion and 10 billion yuan this year from 12.9 billion yuan in 2008.

"Our capital expenditure for 2009 will be narrowed down, in response to the overall situation of the industry," chief financial officer Fan Cheng said at a press conference.

But the company also said it will continue to increase capacity this year and has seen signs of improvement in its passenger and cargo businesses.

The airline would take delivery of 27 aircraft this year and return eight to 10 leased aircraft, Chairman Kong Dong told reporters.

Air China is confident that the aviation industry on the mainland will show stronger growth in 2009 than the rest of the world...

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