CEA China Eastern Airlines Corp Ltd

   By Joanne Chiu 
 

State carrier China Eastern Airlines Corp. (0670.HK) agreed to buy a total of 50 single-aisle passenger aircraft from Boeing Co. (BA), as it seeks to expand into the budget-airline market.

China Eastern Airlines said Thursday that the 50 Boeing 737 series narrow-body jets will be operated by its unit China United Airlines, a Beijing-based domestic carrier that is transforming itself into a low-cost airline.

The deal has a combined list price value of up to $4.56 billion, though airline customers typically get large discounts from aircraft manufacturers for bulk purchases. The carrier plans to take delivery of the jets between 2017 and 2019.

China Eastern's latest purchase comes as the country's airlines continue expanding their networks to cope with rapidly growing demand for air travel, while at the same time speeding up retirement of older and less fuel-efficient aircraft to reduce operating costs.

Write to Joanne Chiu at joanne.chiu@wsj.com

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