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Hainan Airlines Confirms Boeing Orders

China's regional carrier Hainan Airlines confirmed Friday its order for three Boeing 737-800s worth more than US$200 million at catalogue prices.

 

The aircraft would be delivered in July, August and September of 2005, Hainan Airlines said, adding had obtained a 1.1 billion yuan (US$133 million) loan agreement to finance the orders.

 

The airline did not disclose the actual payment, but analysts said the size of discounts depended on factors like relationship and negotiations.

 

The new Boeing planes would be used by a subsidiary carrier based in Central China's Shanxi Province, the carrier said.

 

Founded in 1993, Hainan Airlines is the fourth-largest carrier group in China, with more than 100 aircraft operating on more than 500 domestic and regional routes.

 

In June, the company announced it had won shareholder approval to buy five A319 planes as part of a larger acquisition of 26 aircraft, mostly from Boeing.

 

Last week, it signed a contract with European plane maker Airbus to buy eight narrow-body A319s.

 

China is expected to overtake Japan as the world's second-largest aviation market in less than 20 years, prompting homegrown airlines to expand their fleets.

 

(Shenzhen Daily November 8, 2004)

 

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