Shandong Airlines Becomes Boeing's Newest Customer In China

SEATTLE, May 18, 1995 -- Shandong Airlines, headquartered in Jinan, capital of Shandong Province in the People's Republic of China, today announced it has ordered three Boeing 737-300s, the Boeing Commercial Airplane Group confirmed. Total value of the order with spares and training is worth approximately $120 million.

The contract was signed today in Jinan by Sun Dehan, president of Shandong Airlines, by Ye Yigan, president of China Aviation Supplies Corporation, and by representatives of the Boeing Commercial Airplane Group. The signing ceremony was also attended by senior officials of Shandong Province.

Deliveries will begin in late 1995, with additional deliveries in January and August 1996. The twinjets will be powered by CFM56 engines.

With a population of 87 million, Shandong Province has seen vigorous economic growth and increasing air traffic in recent years. Shandong Airlines will operate its new 737-300s on domestic routes to major hub cities in China, including Beijing, Shanghai, Guangzhou and Shenzhen.

As configured for Shandong, the 737-300s will feature a single- class seating arrangement.

"China is a vibrant market, and airlines seeking to develop a market advantage in the region are investing in new Boeing equipment which allows them to provide a high quality service, while maximizing operating efficiencies," said Larry Dickenson, vice president, Asia/Pacific Sales, Boeing Commercial Airplane Group.

"This order is a strong vote of confidence by Shandong in Boeing airplanes as a contributor to the airline's business objectives," Dickenson said. He added that "Boeing's 'working together' efforts with China through the Boeing office headquartered in Beijing will provide convenient service and coordination to facilitate operations at Shandong Airlines."

The advanced technology Boeing 737-300 is among the quietest and most fuel-efficient aircraft in the world. It offers advanced structural materials, new corrosion inhibiting techniques, advanced digital avionics technology, improved aerodynamics, and high-bypass engines.

Shandong Airlines president, Sun Dehan, said, "The Boeing 737's will allow Shandong to provide efficient, comfortable commercial jet service. We expect that these airplanes will contribute to, and enhance, our market success."

The Boeing 737, with more than 3,000 announced orders, continues to lead the industry as the best-selling commercial jet of all- time. More than 110 of the popular twinjets now operate in China.