HONG KONG-China has cleared Boeing Co.'s (BA) 787 planes for
commercial service with the nation's airlines, a development that
could help Boeing lock in more orders from one of the world's
fastest-growing aviation markets.
The Civil Aviation Administration of China's decision comes less
than a month after U.S. and Japanese authorities lifted a flight
ban on the Dreamliner, which had been grounded world-wide since
January after lithium-ion batteries burned on two planes.
China's prosperity has fueled robust travel demand, and Chinese
carriers looking to bulk up their fleet now have the option of
ordering the Dreamliner to cover long-haul, nonstop routes to
Europe and North America. Boeing's new plane is smaller than many
existing wide-body jets, but can fly greater distances.
Japan's All Nippon Airways Co., a unit of ANA Holdings Inc.
(9202.TO), said Thursday it will bring the 787 back into commercial
service in late May to operate additional flights for some domestic
routes. United Continental Holdings Inc. (UAL) earlier this week
completed its first commercial 787 flight since the planes were
grounded in January.
A person familiar the situation told The Wall Street Journal
that China Southern Airlines Co. (1055.HK) will be the first
Chinese carrier to receive the Dreamliner jets in weeks. A China
Southern spokeswoman declined to comment on when it will take
delivery.
Chinese airlines have ordered a total of 35 Boeing 787s,
including 10 each for Hainan Airlines Co., the nation's
fourth-biggest carrier, and its bigger rival China Southern,
according to Boeing.
Guangzhou-based China Southern, the nation's biggest carrier by
fleet size, had expected to take delivery of the first jet last
year after several rounds of production delays, but the plan was
held up because Chinese authorities hadn't issued an airworthiness
certificate for the aircraft. The grounding of 787s worldwide added
to the delay. Some foreign airlines had been operating 787s on
routes into China before the grounding.
For months, 787s painted in China Southern and Hainan Airlines
colors have sat outside the aircraft manufacturer's production
facilities in the U.S., undergoing flight tests and awaiting
delivery.
A China Southern executive said earlier it wants to take
delivery of as many as eight 787s this year, with the remaining two
on order joining the fleet next year. The carrier will first
operate the Dreamliners on key domestic routes such as
Guangzhou-Beijing and Guangzhou-Shanghai, before moving them on to
international services such as Guangzhou-London and
Guangzhou-Vancouver.
Hainan Airlines has said it plans to operate the 787s on a new
service between Beijing and Chicago starting in September.
Boeing expects China will need 5,260 new airplanes in the next
20 years, buoyed by refleeting and growing demand for air travel.
China's airlines operated 1,941 planes as of the end of 2012,
according to the aviation regulator.
Write to Joanne Chiu at joanne.chiu@wsj.com
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