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China Southern spends billions on new Boeing order

October 25, 2017 Headline News No Comments Email Email

China Southern Airlines has placed an order with Boeing for USD 5.65 billion worth of new aircraft.

An account in the Indian Express said the order was for eight B777-300ER wide-body jets and 30 B737-8 narrow-body aircraft.

The planes are due for delivery between 2019 and 2020. The airline said it would fund the new planes from its own funds and loans from commercial banks, according to the news outlet.

The carrier views the order as helping pave the way for its “two hub” strategy, which entails establishing a secondary hub at a second major airport being built in Beijing. This would support China Southern’s main hub in Guangzhou.

Beijing’s new airport is scheduled to open in October 2019, largely to relieve pressure on Beijing’s existing international airport, which says is currently the world’s second largest by passenger volume.

Written by William Sykes

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