Hainan Airlines order for 30 787-9s underscores trans-Pac growth. Partnerships will need to increase

Hainan Airlines' decision to order 30 787-9s for delivery by 2021 will see Hainan narrow the international/widebody gap it has with China's three main state-owned airlines. Hainan has the fourth most number of passenger widebody aircraft in China (29) after Air China (83), China Eastern (59) and China Southern (57). The 787-9s, which supplement an earlier order for 10 smaller 787-8s, will take Hainan's disclosed commitment for future widebody aircraft to 37, ahead of Air China (32), China Eastern (20) and China Southern (13).

Many or even most of the 787-9s can be expected to be used on trans-pacific routes, Hainan's core long-haul segment and a market that is growing rapidly. The larger 787-9 not only allows Hainan to carry more passengers but decreases unit costs, critical as Hainan still needs to build yield strength. The order is still probably conservative and Hainan could have more growth - if Beijing allowed.

With more long-haul growth, Hainan will need to turn to partnerships. After Emirates and Alaska Airlines, Hainan is the largest full-service airline not part of a global alliance.