Story ID: 509boeingordersFboro16.doc
Ruili Order Extends Boeing’s Chinese Widebody Penetration
By: Gregory Polek
Caption: Order for six 787-9s worth an estimated $1.59 billion, as Boeing continued to build its BCF orderbook at Farnborough Airshow.
Word Count: 537
A $1.59 billion order for six Boeing 787-9s from China’s Ruili Airlines capped another busy day for Boeing at the show yesterdayFarnborough International Airshow yesterday. The order represents the first widebody order for the Yunnan-based carrier. Delivery schedules call for the first airplane to go to the privately owned carrier in 2021.

Ruili Airlines first announced an intent to order the six 787-9 Dreamliners in May at the ceremony for the airline’s two-year anniversary. The deal remains subject to Chinese government approval.

Established in February 2014, Ruili operates a fleet of nine 737 airplanes on 16 domestic routes with 46 daily departures. Also holding orders for thirty 737 Max narrowbodies, the carrier plans to expand its fleet to 70 airplanes by the end of 2025.

“With our base in Yunnan province, Ruili Airlines is positioned to help build Yunnan as the gateway between Southwest China and the rest of the world,” said Ruili Airlines chairman Ma Zhanwei. “The right size, long range, competitive fuel efficiency, as well as passenger appealing edge of the 787-9 make it an ideal fit in facilitating our international expansion plans.” Speaking at a press briefing at Boeing’s chalet yesterday, Ma noted that considerations for expansion include the possibility of adding North American destinations.

“We are honored to expand our partnership with Ruili Airlines,” said Boeing Commercial Airplanes president and CEO Ray Conner. “The 787-9 would complement Ruili Airlines’ narrowbody fleet and enable them to operate long-haul services to destinations as far as America and Europe, while providing the latest and most advanced technology in passenger comfort.”

The Ruili announcement followed Boeing’s revelation that an order for nine 737-800NGs previously attributed to an identified customer belonged to Egyptair. That contract, worth $864 million at list prices, includes a financing arrangement on eight of the airplanes involving Dubai Aerospace Enterprise (DAE).

Egyptair now operates twenty 737-800NGs and once it takes delivery of the nine airplanes on order, NGs will account for the largest single-aisle aircraft type in its fleet. The airline also flies six 777-300ERs and two 777-200ERs. Its Airbus fleet consists of 15 A320-family jets and 11 A330s.Egyptair forecasts significant growth of its total fleet by 2026.

Boeing also identified Air Europa as the customer for twenty 737 Max 8s. Air Europa announced an order for fourteen 787-9 Dreamliners in 2015, making it the largest ever Boeing widebody customer in Spain. Air Europa now holds a combined order total of 22 787-8s and 787-9s as it continues its transition to an all-Boeing long-haul fleet.

Other commercial activity for the U.S. manufacturer involved orders and commitments covering 10 Boeing Converted Freighters (BCF). Sofia, Bulgaria-based Cargo Air and Bogota, Colombia-based LAS will each receive two 737-800BCFs. Air Algerie, based in Algiers, signed a commitment for two 737-800BCFs, while an unidentified customer ordered four 767BCFs.

Boeing has now won firm orders for twenty-two 767BCFs and orders/commitments covering at least fifty-nine 737-800BCFs. Launched in February, the narrowbody program calls for modification at select facilities near conversion demand, including Boeing Shanghai Aviation Services. The first 737-800BCF is due for delivery in the fourth quarter of 2017.