Air China’s subsidiary Shenzhen Airlines has signed a deal with Boeing to purchase 46 737 aircraft for $4.3bn.
The airline expects to receive the new aircraft in phases between 2016 and 2020, which will expand the group’s overall fleet capacity by approximately 6%.
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With the new 737s, Shenzhen Airlines will be able to serve the increasing travel demand in China by adding new routes to its existing network.
Shenzhen Airlines currently operates a fleet of more than 100 aircraft, including Boeing 747 and 737, as well as Airbus A320 and A319 airliners that serve more than 200 domestic and international routes.
The carrier has not disclosed which variants of the single-aisle 737 it will buy as part of the latest order.
The 737 family aircraft are priced between $78.3m and $113.3m.
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By GlobalDataAir China plans to finance the purchase using cash generated from Shenzhen Airlines’ operations, bank loans and other financing instruments.
The carrier acquired Shenzhen Airlines in 2010, to strengthen its presence in south China.
Last year, Boeing’s annual China Current Market Outlook (CMO) forecast that demand for new aeroplanes in China will reach 6,020 by 2033.
Aircraft deliveries to Chinese airlines will represent 45% of the total demand in Asia Pacific region during the period and 16% of global demand.
Image: A Boeing 737 MAX aircraft. Photo: courtesy of Boeing.
