Chia Southern taps Boeing for new freighters

China Southern Airlines filed notice with the Shanghai Stock Exchange for a landmark $3.62 billion agreement to purchase seven Boeing freighter aircraft. The deal marks the first known purchase of the next-generation Boeing 777-8 freighter by a mainland Chinese carrier. The airline will purchase two conventional 777F and five 777-8F jets, with options to purchase three additional 777-8Fs. Total cost of $3.62 billion valuation is based on list prices, though Boeing offered significant commercial concessions. If the options for the three extra planes are exercised, the total list price could reach $5.24 billion. Deliveries are scheduled to run in batches between 2027 and 2034. This marks one of the most significant commercial deals between a Chinese state-owned airline and Boeing in years, following a thaw in trade tensions that previously paused such transactions. The carrier is expanding its all-cargo capability, securing a plane model optimised to carry up to 118 tonnes while improving fuel efficiency over older cargo jets. The state-owned airline ranks in the top 10 carriers in the world by cargo traffic, according to the International Air Transport Association. China Southern Cargo operates 19 Boeing 777 freighters in addition to managing cargo carried in the belly hold of the parent company’s passenger planes. Earlier this month, China Southern Cargo and FedEx Corp. agreed to work on finding ways to cooperate on cargo logistics, according to media reports. It is Boeing’s first 777-8 order since August, when Korean Air ordered aircraft. Boeing, which has about 70 orders for the 777-8, has fallen behind Airbus in the race for large next-generation freighters. Airbus says it has registered 103 orders for the A350F from 14 customers. Boeing recently received a big blow when Atlas Air, a major all-cargo carrier and the largest operator of Boeing 747 jumbo jets in the world, signed a deal for 20 Airbus A350Fs after exclusively operating Boeing aircraft its entire history, according to cargo publication FreightWaves. The 777-8 can carry nearly as much cargo as a 747-400 but has 30% improved fuel efficiency, 25% better operating costs per ton and up to a 60% smaller area for noise impact on the ground, according to Boeing. The company plans to deliver the first aircraft in 2028 after several years of development delays. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]