The Boeing corporation this week announced a series of sales and agreements for new 737-based planes worth billions of dollars to the company.
All Boeing 737s are assembled in Renton.
Boeing and Xiamen Airlines announced Monday at the 2016 Farnborough International Airshow a Memorandum of Understanding for the purchase of up to 30 737 MAX 200 airplanes, valued at up to $3.39 billion at current list prices.
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.
Both parties will work closely to finalize the agreement, which requires the approval of Xiamen Airlines board and the China Southern Airline Group board, as well as the Chinese Government.
“We are pleased with this new milestone in our relationship with Xiamen Airlines,” Boeing Commercial Airplanes President and CEO Ray Conner said in a press release. “The market-leading efficiency and reliability of the 737 MAX 200 will enable Xiamen and its subsidiaries to expand its growing network, while maintaining an optimal fleet. This MOU further demonstrates the strength of our enduring partnership and we look forward to finalizing the deal in the near future.”
Xiamen Airlines currently operates an all-Boeing fleet of more than 140 airplanes including six 787 Dreamliners, 130 Next-Generation 737s and four 757s. The carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and looks to expand regionally with the new 737 MAX.
Xiamen-based Xiamen Airlines is a stated-owned subsidiary of China Southern Airlines.
Also Monday, Boeing and Donghai Airlines announced today the airline’s intent to purchase 25 737 MAX 8s, along with five 787-9 Dreamliners, at the 2016 Farnborough International Airshow. The agreement is valued at more than $4 billion at current list prices.
Shenzhen-based Donghai Airlines previously ordered 15 Next-Generation 737-800s and 10 737 MAX 8s in 2013. Donghai continues to fulfill its strategic plan to convert its business model from cargo services to passenger services.
“Donghai Airlines has undergone steady development over the past 10 years since the beginning of our freighter operations in 2006,” Mr. Wong Cho-Bau, Chairman, Donghai Airlines, said in a press release. “Under China’s One Belt One Road initiative, we will accelerate our fleet expansion plan to satisfy the rapidly growing air travel market and help build our home base Shenzhen as the transportation hub in southern China. We’re committed to introducing new next-generation airplanes that deliver the industry-leading fuel efficiency and passenger comfort in their segment market as a key effort to fulfill the plan.”
Boeing will work with Donghai Airlines to finalize the details of the agreement. The order will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.
“We are honored by Donghai Airline’s reaffirmation of the 737 MAX, and we look forward to welcoming Donghai as our new 787 customer,” said Conner of the deal. “These new airplanes will provide Donghai Airlines with the added efficiency, operating economics and passenger comfort for their business growth domestically and internationally.”
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
Donghai Airlines started freighter operations in 2006. The carrier expanded to offer passenger services in 2014. Donghai Airlines currently has a fleet of 11 Boeing 737-800s serving for more than 10 cities across China. With extended air route network, the Shenzhen-based carrier is making great efforts to build a modern medium-scale airline with high quality.
Finally, Boeing and Standard Chartered Bank announced an order for 10 Next-Generation 737-800s. The order, valued at $960 million at current list prices, was attributed to an unidentified customer on the Boeing Orders & Deliveries website.
Speaking at Farnborough, Kieran Corr, Head of Aviation Finance at Standard Chartered, said: “We are excited about adding these new Boeing aircraft to our fleet. Our current portfolio consists of over 110 aircraft on operating lease to airline clients globally. We are committed to continuing to grow and diversify our client base over the next couple of years.
With an average age of less than five years, Standard Chartered’s fleet comprises some of the most modern and fuel efficient aircraft in the market. “Our key markets are Asia, Africa and the Middle East, with a focus on emerging markets,” added Corr. “We want to help the aviation sector grow in those markets to drive regional trade and investment and we can only do that with an expanded diversified fleet.”
“We’re proud that Standard Chartered has chosen the Next-Generation 737 to grow its Aviation Finance business,” said Conner. “They’ve had great success in the past with 717s and 737 Classics, and we’re pleased to welcome them back to Boeing.”
The Boeing 737-800 is one of the best-selling versions of the highly successful Next-Generation 737 family, the most technologically advanced airplanes in the single-aisle market. The Next-Generation 737’s market success has been confirmed by investors who consistently rank it as the most preferred single-aisle airplane due to its wide market base, superior performance efficiency and lowest operating costs in its class.
