Boeing wins US$4.3 billion aircraft order from Air China affiliate

[BEIJING] Boeing Co. won a commitment from an Air China Ltd. affiliate for single-aisle jets valued at US$4.3 billion as domestic regional carriers expand their fleet to meet rising travel demand.

Shenzhen Airlines signed a purchase agreement for 46 737 models, Beijing-based Air China said Wednesday in a filing to the Shanghai stock exchange, without giving more details. The price of a jet in the 737 family ranges from US$78.3 million to US$113.3 million, according to list prices on Boeing's website. Buyers usually get a discount from the manufacturer when ordering in bulk.

Shenzhen Air, based in the southern Chinese city that borders Hong Kong, will take delivery of the planes over five years starting in 2016. The new order will help the carrier increase capacity by 6 percent from 2014, said Air China, the country's biggest carrier by market value.

The airline will pay for the purchase in cash installments, Air China said in the statement.

BLOOMBERG