China Southern Airlines Buys 12 Dreamliners
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.
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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.