Boeing Wins $1.3 bn Buy Commitment from China's Okay Airways

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Boeing said Wednesday it has won a commitment from China's Okay Airways to buy 12 aircraft from the 737 family in a deal worth $1.3 billion.

The deal is subject to the approval of the Chinese government and will be posted on Boeing's list of orders once the green light is given, the U.S. aircraft maker said at the Singapore Airshow.

Okay Airways, a privately owned airline with headquarters in Beijing, committed to buy eight 737 MAX 8s, three 737 MAX 9s and one next generation 737-900 extended range version.

The Chinese carrier also has the option to order another eight 737 MAX 8s, Boeing said.

"We greatly value the ties we have built over the years with Boeing," said Okay Airways chairman Wang Shusheng.

He said the additional orders "will modernise our fleet and ensure we operate the most efficient fleet well into the future".

The order is a boost to the 737 MAX 9, which has been outsold by the A321 neo, its rival narrow body aircraft made by Europe's Airbus.

According to an analysis by industry publication Flightglobal before Wednesday's announcement, airlines have ordered 224 737 MAX 9s compared with 1,111 A321neos.

Boeing said the purchase commitment marks the first order for the 737 MAX 9 by a Chinese airline.

"We are honoured to welcome Okay Airways as our newest 737 MAX 9 customer," said Ray Conner, president and chief executive of Boeing Commercial Airplanes.

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