Boeing Co. will sell 50 narrow-body 737 jets to a discount airline being set up by China’s Juneyao Airlines Co., Bloomberg reports. The deal for a mix of 737NG and Max jets would have a value of between $3.8 billion and $5.5 billion.
Last fall, Boeing said it expected China’s airlines to triple the size of their fleets over the next two decades, driven by strong economic growth and rising tourism spending.
Boeing and European rival Airbus Industries anticipate China to drive sales as growth in demand cools elsewhere. Purchases by Chinese carriers should rise 7 percent a year through to 2032, totaling 5,580 planes for $780 billion, Boeing Co. said in an annual sales outlook issued in September. It said that should account for one-sixth of global sales.