Country’s Third Largest Airline Orders Additional Planes
The country’s third largest airline carrier China Eastern Airlines Corp. recently made and order to purchase an additional 80 B737 planes from Boeing Company at US$ 7.4 million which makes the purchase the biggest order made by an Asian country. The airline will buy a variety of 737-800 and will upgrade its Max models that will be delivered between 2016 to 2020.
To ease the cost of the purchase China Eastern will be selling 15 of its aging B737-800 and five B757 jets back to Boeing. The purchase will also be financed through business operations loans from banks and other finances. Several Chinese carriers are increasing the capacity to add more flight routes domestically and internationally as more people are flying. Last May China Southern Airlines ordered an additional 80 aircraft from Airbus Group worth US$ 7.3 billion. 13 more Chinese airlines have doubled their existing number of aircraft and each airline will have a fleet of a hundred in ten years.
Boeing also stated that it’s not closing out any possibilities of building a final assembly line of single aisle aircraft in China. For four years running Boeing increased their estimate for the demand for planes in China and is expecting to deliver around 5,580 planes from this year until 2032.