China Postal Airlines has signed with Boeing for 10 737-800 Boeing Converted Freighters, although the programme has yet to be launched.
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Boeing announced orders and commitments for 300 Boeing aircraft during Xi’s visit, as well a partnership with Commercial Aircraft Corp of China (Comac) to open a China completion center for the delivery of Boeing 737 aircraft.
Once firmed, the complex agreement will see Boeing take back 13 757s, three 737-300s and “certain aircraft spare parts and spare engines”, China Southern said, announcing its plans to the Hong Kong stock exchange on December 17.
The jet maker has been gauging customer interest in the converted aircraft as the current generation of 737 passenger planes is to be replaced by the upgraded 737 Max passenger aircraft later this decade.
“This is a historic order both for China Postal and Boeing”, says Yufeng Li, president of China Postal Airlines, who signed the agreement with Boeing leaders at a December 15 ceremony in Beijing. The deal will add to the fleet of China Southern, Asia’s largest carrier by the number of passengers, as the country is set to become the biggest travel market in the world in 20 years. Industry analysts have cautioned that Chinese airlines are suffering from over-capacity and low air fares.
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The airline will also swap the nine B737 jets it acquired in 2012 with Boeing’s newer B737 MAX series aircraft, it said. However, the aircraft disposals will result in a 2.2% reduction in ATKs against its December 31, 2014 capacity.
