Boeing gets US$3.8b order from China airline

[HONG KONG] Boeing Co will sell 50 single-aisle 737 jets with a list value of at least US$3.8 billion to a discount carrier being set up by China's Juneyao Airlines as the government eases controls on low-cost travel.

The purchase by Juneyao's 9 Air subsidiary will consist of planes from the 737 Next Generation family and the upgraded Max, Boeing said. That would value the deal at US$3.8 billion to US$5.5 billion based on retail prices. Buyers typically pay less than the sticker.

The sale is a boost for Boeing in an aircraft market that Airbus Group predicts will overtake the US as the world's largest by 2032. China's Civil Aviation Administration in February said it would loosen regulations and study tax breaks to encourage budget carriers, while China Eastern Airlines Corp in March ordered 70 Airbus A320s.