China Southern Orders 38 Boeing Aircraft

China Southern Airlines has ordered 38 Boeing aircraft in a deal the airline said is worth USD$5.65 billion at list prices.

The order, for 30 Boeing 737-800s and eight 777-300ERs, will be delivered in 2019 and 2020.

China Southern said the order will help it satisfy market demand at Beijing’s new second airport and its home hub at Guangzhou Baiyun Airport, the airlines “dual-hub” strategy.

Beijing’s new airport located in Daxing District is due to open in 2019 and will relieve pressure on the capital’s existing overstretched international hub, Beijing Capital Airport. China Southern said it will move its Beijing operations to the new airport when it opens.

The Boeing order is the second major aircraft purchase agreement China Southern has made this year, after it signed a $6.2 billion list price deal in April for 20 Airbus A350-900s. The A350s will be delivered between 2019 and 2022.