Boeing to Sell 50 737s to Chinese Carrier 9 Air

Boeing 737 MAX

Boeing 737 MAX

Boeing will sell 50 single-aisle 737 jets with a list value of at least $3.8 billion to a discount carrier being set up by China’s Juneyao Airlines Co. 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 in an e-mailed statement without giving a breakdown. That would value the deal at $3.8 billion to $5.5 billion based on retail prices. Buyers typically pay less than the sticker.

The sale is a boost for Chicago-based Boeing in an aircraft market that Airbus Group NV predicts will overtake the U.S. 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.

Boeing said:

Boeing is pleased that 9 Air has committed to 50 Boeing 737s, including Next-Generation 737s and 737 MAXs. The airline intends to introduce the world’s best-selling, 737 family of airplanes into its fleet as it prepares to launch revenue service later this year.

“We are honored to welcome 9 Air as Boeing’s newest customer,” said Ihssane Mounir, vice president of Sales and Marketing for Northeast Asia, Boeing Commercial Airplanes. “The success of Boeing’s market-leading 737 family of airplanes has proven to be a winning formula for low-cost carriers around the world. I am confident that this success will be replicated with 9 Air’s low-cost business model.”

Based in Guangzhou, 9 Air is China’s newest low-cost airline and is also a subsidiary of Juneyao Airlines. With this commitment, 9 Air is poised to become another all-Boeing operator in China. The new low-cost carrier plans to launch domestic services to meet growing air traffic demand in China.

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