China Southern Airlines and Boeing announce order for 30 737-8s, eight 777-300ERs

China Southern Airlines and Boeing announced (20-Oct-2017) an order for 38 Boeing aircraft, worth USD5.65 billion at list prices. The order, for 30 737-800s and eight 777-300ERs, will be delivered in 2019 and 2020. Specifically, the aircraft will be delivered in stages to the company during the period commencing from 2019 to 2020, of which five 777-300ER and 12 737-8 aircraft will be delivered in 2019 and three 777-300ER and 18 737-8 aircraft will be delivered in 2020. The total consideration will be paid to Boeing in installments according to the respective delivery schedule for each of the relevant aircraft from 2019 to 2020. The consideration will be partly payable by cash and partly by financing arrangements with banks or other institutions. Explaining the rationale for the order, the carrier said the aircraft will help "satisfy the market demand of Beijing second airport and push forward the Group's "dual-hub" strategy, so as to enhance the competitiveness of the Group. The Boeing Aircraft will increase the ATKs of the Group by 8.1%, when compared to the ATKs of the Group as at 31 December 2016, without taking into account the adjustment according to market conditions and age of the aircraft fleet". [more - original PR]