China Eastern Airlines Corporation Limited (CES) has executed Amendment No.10 to its February 28, 2014 A320 Family NEO Purchase Agreement with Airbus S.A.S., dated March 25, 2026. The new amendment formalises the acquisition of 101 additional aircraft (the “Third Batch NEO Aircraft”) and updates key commercial terms.
Key transaction highlights:
1. Fleet Composition • The order comprises A320 NEO, A321 NEO and A321XLR variants. • All 101 units will be delivered under the revised agreement, which now covers the First, Second and Third Batch NEO Aircraft.
2. Pricing Framework • Airframe base prices have been reset to a January 2024 economic base period. • Separate base prices for CFM LEAP-1A and IAE PW1100G-JM propulsion systems are stipulated; price-adjustment formulas tied to U.S. Bureau of Labor Statistics labour and material indices replace the previous LIBOR-linked mechanism.
3. Delivery Schedule • Airbus is obligated to have each aircraft “Ready for Delivery” within new scheduled delivery periods defined in Clause 9; formal month-specific notifications will be provided 12 months (for year-designated slots) and three months (for quarter-designated slots) in advance.
4. Customisation & Specification • The amendment integrates updated standard specifications for the A320-200N, A321-200NX and A321-200NY (XLR). • CES retains the option between CFM and IAE engine types; failure to select on time may defer delivery slots.
5. Support & Services • Airbus will supply up to 240 man-months of on-site representatives, covering entry-into-service and sustaining support, with a cap of 15 representatives on site concurrently. • Flight operations, performance and maintenance training allowances are granted for the full 101-aircraft tranche, available from 18 months before the first delivery until 12 months after the final hand-over.
6. Warranty & Labour • In-house warranty labour reimbursement is fixed at a base rate of USD [rate redacted] per man-hour, subject to annual indexation via the Employment Cost Index (ECI).
7. Legal & Governance • The amendment is governed by English law, with any disputes to be settled under ICC arbitration in London. • Confidentiality, assignment restrictions and third-party-rights exclusions from the original purchase agreement remain in force.
With Amendment No.10, CES deepens its strategic fleet renewal programme, positioning the airline for continued capacity expansion and efficiency gains through the latest A320 NEO family technologies.
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