China airlines to buy 200 Boeing 737 Max planes in US$20.7b deal: sources

Boeing has secured commitments for about 200 of its 737 Max aircraft, the upgraded variant of its best-selling short-haul planes, from multiple Chinese customers, two people familiar with the deals said.

The deals are worth a combined US$20.7 billion at list prices and must be approved by the Chinese government – the usual practice for aircraft orders in the country – before the customers can be identified, the sources said.

These are the first commitments for the 737 Max from China, the world’s fastest-growing airline market.

Officials from both Boeing and Airbus, which makes the A320, a competitor for the 737, have said China is likely to overtake the United States as the world’s largest market over the next 20 years.

The commitments come from a range of customers including state-owned airlines via the national procurement agency, China Aviation Supplies, as well as leasing firms associated with the country’s banks, the sources said.

China Aviation Supplies could not be immediately reached for comment.

Airlines such as Air China, China Eastern Airlines and China Southern Airlines are all operators of the current models of the 737.