Paul Lewis/SINGAPORE
CHINA SOUTHERN Airlines is threatening to order Airbus A320/321s unless Boeing cuts the cost of a planned purchase of 25 737-700/-800 passenger aircraft.
The Guangzhou-based carrier is understood to have signed a memorandum of understanding with Boeing for 25 new-generation 737s, but has still to reach an agreement on the aircraft's price.
A China Southern order for the competing A320 family of aircraft would represent a major breakthrough for the European consortium, which has been struggling to broaden its local market share. The only A320s now in service in China are three aircraft recently leased by Sichuan Airlines from International Lease Finance.
China Southern is the country's largest airline and operates an all-Boeing fleet of jet-powered aircraft, including 23 737-300s and 12 smaller -500s. New narrow-body aircraft are needed as partial replacements for the 737-300/-500s, many of which are leased.
One possible cost-cutting option being considered is to combine China Southern's planned purchase with Air China's similar requirement for up to 20 narrow-body jet airliners. The aircraft could then be ordered jointly, for the two carriers, by the state run China Aviation Supplies (CASC).
China Southern, however, is one of the country's more independently minded airlines and it is uncertain whether the carrier would want to acquire its aircraft through CASC. A previous attempt by CASC to place pre-ordered A340s with China Southern failed.
Source: Flight International
