Thursday, May 12, 2005
Boeing wins $3-b China Southern order
AFP
BEIJING: China Southern Airlines and its unit Xiamen Airlines said Wednesday they have signed agreements to buy 45 Boeing aircraft in a deal worth up to $3 billion.
China Southern, the country's largest carrier, will buy 12 of Boeing's 737-700 aircraft and 33 of its 737-800s, it said in a statement in the Shanghai Securities News.
Fifteen of the 737-800s will be bought by China Southern's subsidiary, Xiamen Airlines, with the planes to be delivered between 2006 and 2008. "Board members and the China Southern Group have approved this purchase," the Guangzhou-based airline said.
"We will discuss loan arrangements with commercial banks but up to now we haven't signed any loan contracts."
"This purchase is in the interests of the company and our shareholders," it said. It said the list price for a 737-700 is $50.5-59 million, with the 737-800 running at $61.5-69.5 million. China is expected to sharply increase aircraft orders to cope with anticipated booming tourist traffic in the lead-up to the 2008 Olympic Games in Beijing.
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