Boeing set to score 15 Max jet order from Hong Kong airline

Bloomberg

Boeing Co is set to score a 15-strong order for 737 Max jets from Greater Bay Airlines Co., a person familiar with the matter said, a win for the US company over rival Airbus SE, which had also been vying to supply planes that will be the backbone of the Hong Kong carrier’s operations.
Greater Bay Air has settled for 737-9 aircraft that will seat 200 passengers, the person said, asking not to be identified discussing information that isn’t public. It should start to take delivery of some of the jets, which are 20% more fuel efficient than their predecessor, from mid- 2024, the person said.
A representative for Greater Bay Air declined to comment. Boeing didn’t immediately respond to a request for comment.
Greater Bay Air, which started flying in July last year, has three current-generation 737 jets operating between Hong Kong and four Asian cities including Tokyo and Bangkok. It plans to launch mainland Chinese flights to Beijing and Shanghai and to Osaka in central Japan, according to the company’s website.
Each 737-9 Max jet is valued at $52.3 million based on 2022 prices, according to figures from aircraft appraiser Avitas Inc., meaning the transaction would be worth around $785 million, although airlines typically negotiate steep discounts on large orders.
Greater Bay Air’s founder, property magnate Bill Wong, also set up Donghai Airlines Co., which is based in Shenzhen and operates a fleet of 23 Boeing 737 jets.
Greater Bay Air is attempting to be a challenger to Cathay Pacific Airways Ltd., as well as Cathay’s budget unit HK Express, for flights around Asia.
The planemaker announced on February 7 that it will trim about 2,000 finance and human resources jobs, part of an initiative to slim its corporate structure while bolstering the manufacturing workforce.
The corporate cuts come amid a broader hiring spree as Boeing works to speed output and resolve snarls that have slowed deliveries of its 737 Max and 787 Dreamliner aircraft. The planemaker plans to bring on 10,000 employees this year, particularly engineers and factory workers, after growing its workforce by 15,000 people last year.
Boeing Chief Executive Officer Dave Calhoun has told Bloomberg TV last week that the recruiting drive at the company has included workers from Amazon and Microsoft, which have been slashing jobs. Boeing had 156,000 employees as of December 31.