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      China's budget airline buys 50 Boeing aircraft

      2014-05-15 12:14 Xinhua Web Editor: Qin Dexing
      1

      Jiuyuan Airlines, a new, low cost carrier, signed an agreement with the Boeing Company on Wednesday to purchase 50 aircraft worth more than six billion US dollars.

      The deal is the largest purchase ever by a private Chinese airline.

      The aircraft, including Boeing's 737-800 and 737 MAX, are expected to be in operation by 2020.

      Jiuyuan Airlines, based in Guangzhou City, China's southern business hub, got approval from the Civil Aviation Administration in February and is expected to begin flights in the second half of this year.

      The budget carrier plans prices as low as 9 yuan (1.46 U.S. dollars) to tap a new client source. Guangzhou is the top destination of Chinese migrant workers.

      Boeing has sold more than 1,000 aircraft to China in the past 40 years and will sell another 1,000 in the next 6 to 7 years, according to Ian Thomas, President of Boeing China. China will need almost 6,000 more planes in the next 20 years worth more than 780 billion U.S. dollars.

      Jiuyuan Airlines is jointly owned by Shanghai Juneyao Airlines Co. Ltd, Elion Resources Group Limited Company, Xinhualian Holding Co. Ltd and Juneyao's Ji Guangping with a registered capital of 600 million yuan, according to the Shanghai Juneyao website.

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