This morning Hainan Airlines Co Ltd, announced that its planning to order 30 Boeing Co (NYSE:BA) B787-9 jets, in efforts of expansion. Hainan Airlines is currently the fourth largest carrier in China, and if it is able to complete the order, then it would be considered the second largest in the country. Over the years the company has had discussions as a whole on trying to expand internationally, the growth demand for overseas travel from Chinese residents has sky rocketed.
If the order is completed, it would be the biggest order for Boeing this year, the deal is worth $7.7 billion, according to the list prices. It will also boost the aircraft 787 program backlog, to 885 planes. Chinese passengers are increasingly looking to travel beyond the country, in 2014 alone, more than 100 million trips outside the country were made, and that was a historic high.
Hainan Airline added to more routes last year, one to North America and the other to Western Europe and said that it will add more this year. Cai Zhiquan the airlines brand manager was excited for the idea of expanding, “We’ll be flying from major hubs in China to second- or third-tier cities overseas,” said Cai. “At the same time, we’ll also open up more routes from inland Chinese cities to major hub cities elsewhere.”
Look for the net profit for the airlines to jump again this quarter, especially if the deal goes through, the details of the delivery methods of the planes are still not released.