Fri, Mar 27, 2015 - Page 14 News List

Hainan Airlines ready to buy 30 more Dreamliners

Bloomberg

Hainan Airlines Co (海南航空) is to place an order with Boeing Co for 30 787-9 Dreamliner planes valued at US$7.7 billion, as China’s fourth-largest carrier pushes forward with a bold plan for international expansion.

The airline is set to take delivery of the first of the larger 787s by 2021, it said in a filing with the Shanghai stock exchange on Wednesday.

The deal would add to Hainan’s current Dreamliner fleet of nine and would be the biggest Dreamliner transaction for Boeing since 2013, when it formally unveiled the 787-10, the largest of its three models.

The Chinese carrier, based on Hainan Island, yesterday reported that net profit last year rose 20 percent to 2.6 billion yuan (US$4.18 million) from a year earlier.

Hainan Air is to start service this year from Beijing to Tel Aviv, Israel, and San Jose, California, and from Shanghai to Boston, Massachusetts, and Seattle, Washington. It is also set to offer flights between Chongqing and Rome from late next month, and to increase the frequency of its flights between Beijing and Boston.

The carrier did not say how it plans to finance the agreement for the Dreamliner jets. The 787-9 is priced at US$257.1 million each, and airlines typically negotiate volume discounts.

China is set to surpass North America as the biggest air-travel market within the next two decades, according to Boeing’s forecast.

The Chicago-based aircraft maker last year said it expects Chinese customers to order 6,020 aircraft over the next two decades, worth about US$870 billion.

In September last year, Boeing said orders from China in the first eight months of last year had exceeded the total for the whole of 2013.

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