China Southern Airlines: Board OKs Lease Of 25 Aircraft

SHANGHAI -(Dow Jones)- China Southern Airlines Co. (ZNH) said Tuesday its board has approved the airline to lease 25 aircraft for 10-12 years from International Lease Finance Corp. in an effort to expand its flight network.

The airline said in a statement it would lease five Boeing Co. (BA) B737-700s, five Boeing B737-800s, five Airbus (ABI.YY) A320-200s, and 10 Airbus A321-200s.

China Southern, one of China's major state-controlled airlines, will take delivery of the aircraft between January, 2006 and May, 2007.

International Lease Finance Corp. is a wholly-owned subsidiary of American International Group Inc. (AIG).

China Southern said in the statement the leasing plan still needs shareholder and regulatory approval.

Both Boeing and Airbus view China - the world's second-largest market for passenger planes - as an increasingly important focus for their business.

Airbus is a joint venture between European Aeronautic Defence & Space Co. ( 5730.FR) and BAE Systems PLC (BA.LN).

-By Jeff Meyer, Dow Jones Newswires; 8621 6120-1200; jeff.meyer@dowjones.com

(Linda Lin contributed to this story.)

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