China Southern Airlines and its unit Xiamen Airlines said they have signed agreements to buy 45 Boeing aircraft in a deal worth up to three billion dollars. 

China Southern, the country's largest carrier by fleet, will buy 12 of Boeing's 737-700 aircraft and 33 of its 737-800s, it said in a statement in the Shanghai Securities News.

Fifteen of the 737-800s will be delivered to China Southern's subsidiary, Xiamen Airlines, with the planes to be delivered between 2006 and 2008.

"Board members and the China Southern Group have approved this purchase," the Guangzhou-based airline said.

"We will discuss loan arrangements with commercial banks, but up to now we haven't signed any loan contracts."

It said the purchase would increase China Southern's load capacity by 15 percent. The airline carried 3.63 million passengers in April, up 43.8 percent year-on-year.

"This purchase is in the interests of the company and our shareholders," it said.

The statement said the list price for the 737-700 craft was between 50.5 million to 59 million dollars, while the price for the 737-800 was 61.5 million to 69.5 million dollars.

China is expected to sharply increase aircraft orders to cope with anticipated booming tourist traffic in the lead-up to the 2008 Olympic Games in Beijing.

Last month Airbus concluded a deal with China Eastern Airlines and Shenzhen Airlines for 10 A319/A320 planes, while China Southern completed an agreement on its purchase of five A380 super jumbos.

US-based Boeing is locked in a dogfight with European rival Airbus for sales of their new jets in China, which is expected to build up a fleet of 2,800 craft over the next 20 years.

Boeing currently has a 62 percent share of the Chinese commercial aviation market, which is expected to become the world's second-largest after the United States in the next 20 years.

(CRI.com via AFP May 11, 2005)