China Southern Airlines has ordered 12 more Dreamliners from Boeing. The airline previously ordered 10 Boeing 787–8 aircraft, all of which have been delivered.
China Southern Airlines selects -9
Just like many airlines and in line with Boeing’s aims, China Southern has ordered the bigger Boeing 787–9. The bigger -9 can seat almost 50 more passengers and therefor offers a higher revenue potential. At the same time the Boeing 787–9 is offering better margins than the -8 for Boeing.
China Southern currently has a fleet of 521 aircraft, a mix of Airbus and Boeing jets.
Better value for Boeing
While list prices for the Boeing 787 top $220 million, the actual sales prices are far lower. AeroAnalysis estimated the average sales price for the Boeing 787–8 to be $117 million and $135 million for the Boeing 787–9. Boeing has raked up some $30 billion in deferred balance that it needs to zero out within the first 1,300 deliveries. Selling more of the -9 and -10 airframes definitely plays a big role in this challenge.
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
Article written by partner:
AeroAnalysis was founded in June 2015 and commenced operation in July 2015. In 2013 AeroAnalysis started publishing its work on investing research platform SeekingAlpha, primarily covering the aerospace industry from a unique angle, combining knowledge about investing and aerospace products into unique write-ups that spark healthy discussions and give meaningful insight to investors.