China Southern Airlines orders $10B worth of Boeing 737 jets

HONG KONG -- China's biggest airline said Thursday it's buying more than a hundred Boeing 737 jets in a deal worth about $10 billion that comes just months after the U.S.

See Full Article

plane maker announced plans to build a Chinese finishing plant for the aircraft type.

China Southern Airlines is buying 30 Boeing 737 Next Generation jets and 50 737 Max aircraft, the company said in a statement to the Hong Kong stock exchange. Its Xiamen Airlines unit is buying 30 of Boeing's 737 Max jets.

The Next Generation planes have a list price of $81.2 million while the Max series aircraft sells for $96.1 million.

However, airlines usually negotiate discounts on such deals and the airline said it's paying a "significantly lower" price.

The order comes nearly three months after Boeing Co. signed a deal with state-owned Commercial Aircraft Corporation of China to build its first final assembly plant in China, for 737 aircraft. The company also said at the time that it landed orders for 300 jets from Chinese companies.

Boeing is battling with Airbus to win market share in China, which is forecast to become the world's biggest market for air travel and passenger airplanes thanks to booming demand from China's rising middle class.

The Chicago-based company forecasts the country will need 6,330 new airplanes worth an estimated $950 billion over the next two decades.

The International Air Transport Association, an airline industry group, said last month that China would overtake the United States as the world's top passenger market by 2029.

State-owned China Southern is the country's biggest airline by passengers and fleet size.



Advertisements

Latest Economic News

  • Canadian subsidiary of French defence giant gets $5.2 billion contract

    Economic CTV News
    OTTAWA -- The Canadian subsidiary of French defence giant Thales has been awarded a multibillion-dollar contract to service Canada's new fleet of Arctic offshore patrol ships and joint support vessels. The federal government says Thales Canada, in a joint venture with the company's Australian arm, will provide in-service support for the vessels under a contract that could total $5.2 billion over 35 years. Source
  • Manufacturing sales fall in June after 3 straight monthly gains

    Economic CBC News
    An assembly worker Chrysler's Windsor assembly plant is shown. Statistics Canada reported Thursday that manufacturing sales fell in June, after three months in a row of gains. (Reuters) Statistics Canada says manufacturing sales fell in June, following three consecutive months of gains. Source
  • Train or fire? Bosses grapple with how to handle off-hours transgressions

    Economic CTV News
    TORONTO -- It didn't take long for social media to reveal the identities of some of the participants of a racially charged protest in Charlottesville, Va., last weekend. But it wasn't just individuals who were outed by outraged critics -- it was companies, brands and even suspected employers of individual protesters who were suddenly put on notice that the world was watching. Source
  • Why autos are such an important part of NAFTA

    Economic CTV News
    TORONTO - The future of Canada's more than one million automotive jobs has emerged as a critical part of what's at stake at the NAFTA renegotiation table in Washington after the U.S. chief negotiator targeted the sector on the first day of talks Wednesday. Source
  • Where does the CIBC-PC Financial breakup leave consumers?

    Economic CBC News
    CIBC and President's Choice Financial are amicably breaking up a 20-year banking marriage and divvying up the assets — news one financial expert says isn't necessarily a good or bad thing for consumers. In a nutshell, President's Choice Financial will keep the PC Financial MasterCard credit card service and the PC Plus loyalty program, while the two million PC Financial banking customers will move to CIBC's new service called Simplii Financial. Source
  • Good chance of Pacific trade deal being reached: New Zealand lawmaker

    Economic CTV News
    WELLINGTON, New Zealand -- New Zealand’s trade minister said Thursday he believes there’s an odds-on chance that a group of 11 Pacific nations including Japan and Australia will sign a free-trade deal, despite the U.S. Source
  • Sears Canada executive chairman steps away to make bid for retailer

    Economic Toronto Sun
    TORONTO — Sears Canada executive chairman Brandon Stranzl is stepping away from his role to launch a bid for the beleaguered retailer, which is restructuring under court protection from creditors. A memo to staff Wednesday about his departure from the top job said the company’s goal is to create a path to emerge from creditor protection. Source
  • CIBC takes over PC Financial bank accounts, launches Simplii banking brand

    Economic Toronto Sun
    The Canadian Imperial Bank of Commerce is taking over President’s Choice Financial bank accounts with a new online brand as it responds to the continuing trend towards digital banking. The Toronto-based bank said Wednesday it will cut its nearly 20-year relationship with PC Financial-owner Loblaw Companies Ltd. Source
  • Asian shares rise higher after gains on Wall Street

    Economic CTV News
    TOKYO - Asian shares were mostly higher Thursday in narrow trading, tracking gains overnight on Wall Street. Japan's Nikkei 225 index slipped as the yen strengthened against the U.S. dollar. KEEPING SCORE: Japan's Nikkei 225 index edged 0.1 per cent lower to 19,718.09. Source
  • Toronto's main stock index rises as morning progresses; loonie up

    Economic CTV News
    TORONTO - The Toronto stock market crept higher in late-morning trading as its U.S. peers traded in the red. The S&P/TSX composite index was up 8.80 points to 15,091.01, after 90 minutes of trading. Source