The China Aviation Supplies Group Corporation (CNAC) has signed a bulk purchase agreement with Boeing for 300 Boeing aircraft, Caixin reported, citing an official announcement. According to the catalog price, the order is worth a total value of 245.347 billion yuan (US$37 billion).

The order includes 260 Boeing narrow-body models of the 737 series, and 40 Boeing wide-body models of the 787 and 777 series.

“China’s air transport market is growing rapidly,” CNAC said. “In order to meet the needs of enterprise development, CNAC has to balance the progress of the domestic aircraft production schedule while expanding their capacity and optimizing fleet structure. A bulk purchase of a batch of Boeing aircraft would help.”

CNAC is SASAC’s central-level enterprise, and is an agent for domestic airlines to purchase overseas aircraft. Through centralized purchasing, CNAC will get substantial concessions to buy aircraft from aircraft manufacturers.

Therefore, the actual transaction price of this order will likely be much lower than the US$37 billion, the report said.

In July of this year, during the visit of President Xi Jinping to Germany, Air China also signed an agreement with Airbus to acquire 140 Airbus aircraft worth US$22.8 billion. The order includes 100 Airbus narrow body models for the A320, and 40 wide body A350s.