Boeing and Bavaria International Aircraft Leasing have reached an agreement for six more Boeing Next-Generation 737-700 aircraft, valued at $330 million at list prices.
In addition, Bavaria International has taken options on six additional aircraft. Delivery of the aircraft begins in 2005 and extends through 2007.
Bavaria currently has leased to operators a variety of other Boeing aircraft, including 10 737-300s, four 737-700s and five 717-200s. Based in Munich, Germany, Bavaria is a wholly owned subsidiary of the privately owned SchÃ¶rghuber Group.
China Southern Group Xinjiang Airlines, based in Urumqi, China, will operate two of the new 737s. It already operates four 737-700s, two of which are leased from Bavaria.
The remaining four 737s and six options will be leased to customers to be determined at a later date.
Marlin Dailey, vice president of Sales for Europe, Boeing Commercial Aircraft, said the leasing order is another sign of market recovery.
“Air travel growth is driving demand upward,” Dailey said. “With no 737s sitting idle, lessors are turning to new units to meet the needs of airlines.”