Boeing to Sell Up to $3.39 Billion of Planes to Xiamen Airlinesby
Boeing Co. signed a memorandum of understanding to sell 30 aircraft to China’s Xiamen Airlines in a deal worth $3.39 billion at list prices.
The order is for 737 Max 200 planes to the Xiamen, China-based carrier. The airline, which is already a 737 Max customer, sees the Max 200 as a fit for its low-cost subsidiaries, including Jiangxi Airlines and Hebei Airlines, according to a statement issued at the Farnborough Airshow Monday.
The purchase will help Xiamen Airlines, a subsidiary of state-backed China Southern Airlines Co., broaden its fleet to 200 airplanes by the end of the decade as it looks to expand regionally with the new 737 Max. Xiamen Airlines currently operates an all-Boeing fleet of more than 140 airplanes including six 787 Dreamliners, 130 Next-Generation 737s and four 757s, according to the statement.
The finalization of the agreement requires approval from the boards of Xiamen Airlines and China Southern, as well as the Chinese government, according to the statement.
The planned plane purchase is part of a $10 billion order announced in December for China Southern and Xiamen Air.
Farnborough International Airshow 2016: Full Coverage