Boeing wins $3.2 billion order from China Southern as 787 soars

Boeing landed a deal to sell a dozen 787 Dreamliners to China Southern Airlines, bolstering support for its marquee carbon-fiber jetliner in an otherwise tough market for twin-aisle aircraft.

The order by Asia's biggest carrier by passenger volume is valued at $3.2 billion according to list prices, although carriers typically negotiate discounts. It comes less than a week after Qatar Airways announced an order for 30 Dreamliner

The two deals combined more than doubled Boeing's 787 order tally for the year.

The China Southern order also comes a day after Wichita-based Spirit AeroSystems celebrated delivery of its 500th 787 shipset, including the airplane’s forward fuselage that is sent to Boeing with a fully working cockpit.

China Southern chose the 787-9 model, with a list price of $271 million each, according to a Hong Kong stock exchange statement Wednesday. The planes will be delivered between 2018 and 2020 and funded using cash and loans from commercial banks, the airline said in the statement.

The carrier and its subsidiaries have ordered more than $15 billion of new aircraft from Boeing and Airbus Group in the past year as more people fly in the world's most populous nation.

Last year, Chinese President Xi Jinping signed an order for 300 jets valued at $38 billion on a state visit to the U.S. as Chinese carriers expand their fleet in a nation set to become the biggest travel market in two decades.

China Southern, the country's first Boeing 787 customer, already flies 16 Dreamliners, according to data the airline released in August. The carrier had a fleet of 684 planes, the largest in Asia, as it caters to a nation that is expected to surpass North America as the world's largest aviation market.

Boeing had netted 19 orders for the Dreamliner this year prior to Qatar's announcement, bringing sales for the plane to 1,161.

“We’re very proud to be on this program. We’re proud to be Boeing’s partner. We’re proud to be part of the 787 team,” Spirit CEO Tom Gentile said at Spirit’s 500th delivery ceremony Tuesday in Wichita. In addition to the forward fuselage, Spirit makes the 787’s engine pylons, and its fixed and moveable wing leading edges.

Airbus’ 787 competitor, the A350, netted 25 sales through the end of September.

Both planemakers have contended with slowing demand for widebody aircraft as moderating fuel prices and a glut of used Boeing 777 and Airbus A330 models tempers demand.

This story was originally published October 12, 2016 at 4:12 PM with the headline "Boeing wins $3.2 billion order from China Southern as 787 soars."