Airline buys over 100 jets from Boeing
Print Edition
CHINA’S biggest airline said yesterday that it’s buying more than 100 Boeing 737 jets in a deal worth about US$10 billion that comes just months after the US planemaker announced plans to build a Chinese finishing plant for the aircraft type.
China Southern Airlines is buying 30 737 Next Generation jets and 50 737 Max aircraft, the company said in a statement to the Hong Kong stock exchange. Its Xiamen Airlines unit is buying 30 737 Max jets.
The Next Generation planes sell for US$81.2 million while the Max series aircraft sells for US$96.1 million.
However, airlines usually negotiate discounts, and the airline said it’s paying a “significantly lower” price.
The order comes nearly three months after Boeing signed a deal with state-owned Commercial Aircraft Corp of China to build its first final assembly plant in China for 737 aircraft. The company also said at the time that it landed orders for 300 jets from Chinese companies.
Boeing is battling with Airbus to win market share in China, which is forecast to become the world’s biggest market for air travel and passenger airplanes thanks to booming demand from China’s rising middle class.
Boeing says China will need 6,330 new airplanes worth around US$950 billion over the next two decades.
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