China's Xiamen Airlines Co. placed an $851 million single-aisle jet order from the United States' Boeing Co., reported Bloomberg Tuesday. Xiamen, a part of China Southern Airlines Co., is set to expand to meet increased demand.
The company has planned to purchase 10 737-800 next-generation airplanes valued at July 2014 prices. The aircraft are scheduled to be delivered between 2017 and 2018
"The 737-800 is the best-selling version of the highly successful Next-Generation 737 family," said Ihssane Mounir, senior vice president, Northeast Asia Sales at Boeing Commercial Airplanes, in a statement. "We are pleased to see the 737-800 continues to play an important role in Xiamen Airlines' fleet expansion."
The travel industry in China has seen booming growth. Carriers have placed big orders to grow their fleets to meet demand, and the aircraft industry has increasingly focused on the expanding market. Boeing and its chief competitor, France's Airbus Group SE, have fought to earn lucrative Chinese orders.
The latest order from Xiamen comes after a December announcement that saw the company buy 30 new generation 737 Max planes from Boeing. It was a part of a deal worth $10 billion with China Southern Airlines Co., Asia’s largest carrier by passenger volume. The region is expected to supplant the United States as the world's largest aircraft market over the next 20 years. Just last year, Chinese President Xi Jinping signed an order for 300 Boeing planes worth some $38 billion on a visit to the United States last year. Boeing also inked a deal to construct an assembly plant in China.
Reuters reported that Boeing has forecast in August 2015 that China would require 6,330 planes over the next two decades, a 5 percent rise from its previous year's forecast. Those aircraft would be worth some $950 billion.