Boeing wins S$8.1b plane order from China carrier, lessors

[BEIJING] Boeing Co won a commitment from a Chinese airline and two aircraft-leasing companies for single-aisle jets valued at 38 billion yuan (S$8.13 billion) as carriers in the country expand their fleet amid a surge in travel demand.

Ruili Airlines signed the agreement with Minsheng Financial Leasing and Avic International Leasing for 60 737 Max models, the carrier said in an e-mailed statement dated Monday. The price of a 737 Max ranges from US$87.7 million to US$113.3 million, according to the website of Boeing.

Ruili, based in the southwestern province of Yunnan, received its operating license from the Civil Aviation Administration of China in February 2014. Xinhua reported the deal yesterday.

Chinese carriers are bringing in more orders for Boeing and Airbus Group NV as growth in the world's second-largest economy enables more people to fly. According to a November estimate from the CAPA Centre for Aviation, some 19 airlines have commenced operations or announced plans to start in China since regulators announced last year they would loosen regulations.

"We are happy Ruili has selected the Boeing 737 MAX airplanes," said Wang Yukui, a Beijing-based spokesman for Boeing China, who wouldn't elaborate on Xinhua's Monday report. "We look forward to finalising details of the deal with them."

BLOOMBERG