China Southern to buy 10 Boeing 777s

Boeing (BA, quote) announced February 28 that China Southern Airlines (ZNHquote) has agreed to buy 10 Boeing 777-300ERs, as the airline plans to expand its capacity to meet growing demand in the Asia-Pacific region and China.

Boeing's 777 300ER in flight

“We’re very pleased that China Southern, which has been a staunch 777 supporter from the very beginning of the program, has once again selected the 777-300ER to serve its passengers and to deliver value to its bottom line,” said Ihssane Mounir, vice president, Sales, Boeing Commercial Airplanes.

The Boeing 777 is the world’s most successful twin-engine, long-haul airplane. The 777-300ER extends the 777 family’s capabilities, bringing twin-engine efficiency and reliability to the long-range market. The airplane carries 365 passengers up to 7,930 nautical miles (14,685 km). Boeing has incorporated several performance enhancements to reduce drag and weight for the 777-300ER, extending its range and payload capabilities. 

The agreement requires Chinese government approval. Once approval is attained, the order will be posted to Boeing’s Orders & Deliveries Website.

Investors interested in Chinese airline stocks should look at the Global X China Consumer ETF (CHIQquote), which devotes 5% of its holdings to Air China (AIRYYquote) and China Southern.

Air China is also expanding its fleet, and recently announced a deal with Honeywell (HONquote) to equip 19 new Boeing 777 300ER aircraft with advanced avionics.