Hong Kong carrier CR Airways orders Boeing Planes

Hong Kong carrier CR Airways orders Boeing Planes

Market reports claim that Hong Kong carrier CR Airways has plans to invest more than $3 billion in 40 Boeing aircraft. The airline company has plans to expand its operation in the Chinese aviation market, which is growing at a hectic pace. The South China Morning Post came out with this announcement and cited several sources close to the deal.

The report claimed that CR Airways would sign a memorandum of understanding with Boeing to buy 30 B737-800s and 10 B787s on Tuesday. A formal agreement is due to be signed on sometime next month. The value of this order comes to around $3.28 billion. However, these airline companies manage to extract heavy discounts considering the competition between the two giants in the industries Airbus and Boeing are both working hard on acquiring more deals.

The news report also claimed that it would be hard for the company to finance the deal considering its current financial position. They expect them to take the help from Hainan Airlines to acquire these new planes. Their were reports in the media earlier which claimed that China’s state-owned HNA Group, the parent of Hainan Airlines, was in talks to buy a controlling stake in CR Airways.

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