China Southern Airlines has finalized the sale of 10 Boeing 787-8 aircraft to Avolon, a global aircraft leasing company, following a nearly two-year process. The deal, valued at approximately $550 million, includes two GEnx-1B70 spare engines and is part of the airline's strategic fleet restructuring. The aircraft, which had been subject to sale suspensions due to trade tensions with the United States, are now entering the lessor's portfolio, marking a significant rerouting of the airline's widebody fleet plans.
The sale comes after China Southern initially opened bidding for the aircraft nearly 18 months ago, but progress was delayed when the airline suspended plans amid escalating trade conflicts. During this period, China also limited deliveries of new Boeing aircraft, preferring to utilize older fleet units to meet capacity demands. Eventually, the process recommenced, but finding a suitable buyer proved complex given the geopolitical considerations involved.
The Boeing 787-8 model has been perceived as less favorable in the market due to its smaller size and passenger capacity limitations compared to the 787-9 and other widebody options. China Southern's decision to sell reflects the broader industry trend toward larger, more versatile long-haul aircraft. The airline's strategic focus now shifts toward higher-capacity models to better serve its long-haul routes, aligning with the international industry's evolving preferences for widebody aircraft configurations.
This sale highlights ongoing shifts in airline fleet planning amidst geopolitical tensions and changing market demands, with smaller widebody aircraft becoming more niche-focused and less in demand overall.
