China Southern Air Logistics has signed an agreement to acquire seven Boeing freighters, including five 777-8 Freighters, marking what would become the first order for Boeing’s next-generation cargo aircraft by a mainland Chinese airline.
The agreement also includes two current-generation 777 Freighters and options for three additional 777-8Fs, according to a filing released by China Southern Airlines. The transaction is valued at about $3.62 billion at list prices, although the airline said the actual purchase price will be lower after commercial discounts.
The deal still requires approval from shareholders and Chinese authorities before becoming effective.
The order is notable because it means one of the first major Boeing aircraft purchases disclosed by a Chinese state-owned airline in recent years, following a period of strained trade relations between Washington and Beijing that slowed commercial aircraft transactions.
For Boeing, the agreement also provides another customer for the 777-8 Freighter, a new cargo variant derived from the delayed 777X family. The aircraft has yet to fly, with Boeing currently assembling the first prototype ahead of its certification campaign.
China Southern Cargo currently operates six Boeing 777 Freighters, making the new order a continuation of the airline’s long-haul cargo strategy rather than the introduction of a new aircraft type.
The combination of two in-production 777Fs and five future 777-8Fs allows the airline to add cargo capacity in the near term while preparing to introduce Boeing’s next-generation freighter later in the decade.
The 777-8F is expected to replace older large freighters by combining the payload capability of the 747-400 Freighter with lower fuel consumption and operating costs derived from the 777X program. It will also become Boeing’s flagship dedicated freighter after production of the 747-8F ended in 2022.
