Shenzhen Airlines has struck a deal with Boeing Co to buy 46 B737 planes for $4.3 billion, the carrier’s parent Air China Ltd said on Wednesday, as the group seeks to grow the number of routes served in China’s booming air travel market.
The new planes, to be delivered between 2016 and 2020, are expected to increase Shenzhen Air’s capacity by 6 percent, Air China said in a stock exchange filing.
The airplane order will be funded by bank loans and other financial vehicles, the filing said. Air China had said in May its board had approved Shenzhen Airlines’ purchase of the planes.
Shenzhen Airlines could not be reached immediately for comment on Wednesday.
The carrier plans to add or open more than eight domestic routes during the leisure travel season this summer, according to its website.
Other Chinese carriers, including Hainan Airlines, have also placed aircraft orders recently to service a fast-growing domestic and outbound leisure travel market.