China Southern becomes first Chinese customer for 777-8F¶
Cargo unit CSA Cargo is to purchase five 777-8Fs and a pair of 777Fs.
China Southern Airlines has signed a purchase agreement with Boeing for up to 10 Boeing 777 freighters, including the first known Chinese commitments for the developmental 777-8F.
The deal, disclosed in a 26 June filing, will see subsidiary CSA Cargo order five 777-8Fs and a pair of 777Fs. The company also secured purchase rights for three more 777-8Fs.
The deal is valued at $3.6 billion at list prices, but China Southern notes it was granted “price concessions” following “an arm’s length negotiation” with Boeing.
China Southern says the deal is funded by its “internal resources”, but declines to elaborate further. Deliveries of the freighters, starting with the current 777F, will commence in 2027 and run through to 2034.
The 777-8F has been ordered by operators such as Qatar Airways and Cargolux.
Explaining its reasons for the purchase, China Southern says it expects cross-border e-commerce demand to “continue to mature in the foreseeable future”. It also cites the development of the Guangdong-Hong Kong-Macao Greater Bay Area as a future growth opportunity.
“China Southern and CSA Cargo are actively seizing development opportunities, maintaining steady growth in capacity share, and further optimising their fleet structure. The purchase will help enhance the profitability and core competitiveness of the company and CSA Cargo,” it states.
CSA Cargo, also known as China Southern Air Logistics, was spun off from the China Southern group as an standalone subsidiary in late 2019. It operates a fleet of 16 777Fs.
The order was announced the same day that compatriot China Eastern Airlinesdisclosedan agreement to purchase 25 Airbus A330neo jets.Subscribe to gain access to all newsAlready have a subscription?Log in.Choose your subscriptionConsidering a corporate subscription?Contact usto find out more.
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