China's Spring to buy 21 Airbus planes for $2.04 bn

Chinese budget carrier Spring Airlines said it plans to buy 21 Airbus A320 planes for 12.45 billion yuan ($2.04 billion), citing growth in both international and domestic air travel. The Shanghai-listed company plans to fund the purchase in part through a private placement of shares to raise 4.5 billion yuan, according to a statement to the exchange late Monday.The single-aisle A320 has a list price of $97 million, according to Airbus.

"Demand in China's domestic and international aviation market is steadily increasing," Spring said in the statement. "The company intends to reasonably expand the scale of its fleet to increase its air transport capacity."

Spring Airlines, headquartered in the Chinese commercial hub of Shanghai, was founded in 2005 and now flies more than 90 domestic and international routes, according to its website. Spring's shares, which had been suspended since June 26 amid a rout on China's stock market, were down the daily limit of 10 percent to 113.48 yuan after resuming trading on Tuesday. The company's net profit for the first quarter this year jumped 46.43 percent year-on-year to 254.32 million yuan.