China Southern to acquire 10 777-300ERs

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China Southern Airlines has agreed to acquire 10 Boeing 777-300ERs, the first time this specific type has been selected by the carrier.

The Guangzhou-based carrier said it would purchase the aircraft, the list price for which is $298 million apiece, and take delivery in stages from 2013-16.

China Southern said, however, that the actual price was "significantly lower" than the catalogue price because of concessions from the airframer.

It said it could not disclose the actual agreed price of the aircraft, partly because it has failed to obtain consent from Boeing to reveal the information.

"Disclosure of the actual consideration will result in the loss of the significant price concessions and hence a significant negative impact on the group's cost for the acquisition," the carrier said.

All 777-300ERs are powered by General Electric GE90 engines. China Southern said it would fund the acquisition of the 777-300ERs partly through cash and partly through financing arrangements with banks.

The twinjets will increase the capacity of the group by nearly 8% compared with its position at the end of 2011.

China Southern is already a 777 operator but its fleet currently comprises 777-200 variants including the 777 freighter.