China Southern Airlines to Buy 45 Jets From Airbus and Boeing

In order to increase its operating capacity, China Southern Airlines has agreed to purchase 20 A320 jets from Airbus and 25 B737-800 planes from Boeing, for a combined list price of up to $3.69 billion.

The Airbus A320 aircraft has a list price of between $66.5 million and $85.9 million each, and the B737-800 jet has a catalog price of between $70.5 million and $79 million each.

While the Airbus jets will be delivered to Southern Airlines between March 2009 and August 2010, the company’s 60%-owned Xiamen Airlines unit will take delivery of the Boeing B737-800 jets between July 2011 and November 2013. China Southern and Xiamen will use bank loans and operating funds to buy the jets.

Southern Airlines has said: “We believe the deal will better provide our passengers with premium services and enhance the competitiveness of the company. We expect the transaction, along with the 12 Boeing B737-800 aircraft and six Boeing B777F planes acquired by the company in the past year, to increase operating capacity by 19.5%.”