Boeing [NYSE: BA] is pleased that Kunming Airlines has committed to purchase 10 737s, including four Next-Generation 737-700s and six 737 MAX airplanes.
The commitment, valued at $897 million at current list prices, is subject to the approval of the Chinese government and will be posted on Boeing's Orders & Deliveries website once all contingencies are cleared.
“This commitment is a major step in our growth strategy,” said Xuan Yuen, CEO, Kunming Airlines. “The 737 is the backbone of our fleet and will continue to be in the future. These airplanes will further expand and improve our route network, contributing to our vision to build Yunnan’s gateway airport to be the forefront of the province’s economic development.”
“We are honored to partner with Kunming Airlines as they continue to strengthen their presence in the Yunnan province,” said Ihssane Mounir, senior vice president, Northeast Asia Sales, Boeing Commercial Airplanes. “This commitment from Kunming Airlines represents a strong endorsement of the market-leading efficiency, reliability and passenger comfort of the 737 family of airplanes.”
Capable of carrying up to 128 passengers in a two-class configuration, the 737-700 is one of the most successful selling versions of the Next-Generation 737 family. Known for its reliability, fuel efficiency and economical performance, the 737-700 has been selected by leading carriers throughout the world, and has contributed more than 1,200 orders to the strong success of Next-Generation 737 family orders.
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be 14 percent more fuel-efficient than today's most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service. The 737 MAX 8 will have an 8 percent per seat operating cost advantage over the A320neo.
Kunming Airlines, based at Changshui International Airport in the capital city of Yunnan province, began operations in 2009. The carrier currently serves more than 25 cities across China by operating a fleet of 10 737-700s and five 737-800s.
Source: The Boeing Company (NYSE: BA)
Date: Oct 23, 2014