China's largest carrier, Guangzhou-based China Southern Airlines, is looking for Chinese Government approval to order 20 Boeing 737-800s. It is also finalising an order for two Boeing 747-400 freighters.

Subject to government approval, the 737-800s will be delivered between 2002 and 2005 on 10-year finance leases, replacing older-generation 737s which are on operating leases.

Government approval for the deal is due in the coming weeks, with official confirmation expected in October during a visit by US President George Bush. Deals on 737-700/800s with Air China, China Eastern Airlines, Hainan Airlines and Shanghai Airlines will also be announced during the visit, with the total package expected to be for around 40 aircraft.

A package deal for up to 40 A320-family aircraft is expected to follow the Boeing deal.

Source: Flight International