Air China has signed a purchase agreement with Boeing for five 737-800s and taken options on another 15 as part of China Aviation Supplies' (CASC) recently announced order for 50 widebodies and narrowbodies.

The five 167-seat aircraft are the first Next Generation 737s to be officially purchased by a mainland Chinese airline.

The 737s are all scheduled for delivery between August and November 1999. Air China, in the interim, is looking to lease additional 737-300s.

CASC has ordered a total of 22 737-700/800s and 14 second-generation -300/400s. Another three of the 737-800s are to go to Jinan-based Shandong Airlines, while the remaining aircraft are expected to be distributed between Hainan Airlines, Xiamen Airlines and Zhongyuan Airlines and, possibly, China Southwest Airlines.

Boeing, meanwhile, says that it is negotiating with Aviation Industries of China and US company Hexcel to establish a joint venture to produce secondary structural and interior composites.

The planned new Tianjin-based plant, BHA Composite Parts, will begin manufacturing for Boeing and supplier Hexcel from July 2000.

Source: Flight International