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China Orders More 737s; Boeing Has Won A $2.6bn

Fri May 13, 2005 11:10 am

China Orders More 737s

Media reports indicate that a unit of China Southern Airlines, Xiamen Airlines, has ordered 45 more Boeing 737s.

According to a report from the Seattle Times, China Southern made the disclosure in a stock exchange filing. The order from Xiamen, of which China Southern reportedly owns 60 percent, is worth about $2.8 billion at list prices.

Boeing has won a $2.6bn (£1.4bn) order for 45 aeroplanes from China Southern Airlines and its Xiamen Airlines subsidiary.

The US aeroplane maker is competing with Europe's Airbus for Chinese contracts, as Chinese airlines increase capacity ahead of the 2008 Olympics.

China Southern will buy 12 Boeing 737-700s and 33 737-800s, 15 of which are earmarked for Xiamen Airlines.

The 45 aeroplanes are due to be delivered between 2006 and 2008.

Asian orders

"The purchases would increase China Southern's capacity by 15%," China Southern said in a statement.

Earlier this week, Boeing completed a deal for 30 Boeing 787 Dreamliners and 30 Next-Generation 737-800 passenger aeroplanes with Japan Airlines (JAL), in a deal worth $5.3bn at list prices.

JAL also has options for 20 more 787s and 10 more 737s.

Boeing has recently won a number of large orders in the region, including a $7bn order from Air India, and its shares are trading near their high for the year.

[Edited 2005-05-13 04:12:56]
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