Beijing - China Southern Airlines has signed a memorandum of understanding with Boeing for 8 777-300ER and 30 737 MAX 8. The deliveries are scheduled between 2019 and 2020.

These new aircraft will enable the country's largest airline to have an 8.1% capacity increase in its fleet at the end of 2019.

The contract was unveiled by the Chinese company based in Guangzhou-Baiyun Airport in a financial information note on October 20, 2017, which is estimated at $ 5.6 billion at list price. The finalization of the contract depends on the agreement of the authorities. China Southern Airlines says it has benefited from "substantial price concessions" without, of course, detailing them.

The new Boeing delivery schedule indicates that five 777-300ERs will be delivered in 2019 and the remaining three in the following year. The SkyTeam alliance company already operates ten, which are configured to accommodate 4 passengers in First Class, 34 in Business class, 44 in Premium and 227 in Economy.

On the single-aisle side, the 8 737 MAX 8s are expected in 2019 and the others in 2020. China Southern already operates more than 150 737-800, all configured with three classes (Business, Premium, and Economy).

These new aircraft will enable the country's largest airline to have an 8.1% capacity increase in its fleet at the end of 2019, and support its operations and dual hub strategy at the new Beijing Airport in Daxing, where operations will begin in 2019.

China Southern Airlines had already ordered 20 Airbus A350-900s this year, which are also available from 2019. The contract valued at $ 6.2 billion at the list price, but for which the company had also negotiated a "substantial rebate".