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China Southern Airlines plans sale of entire Boeing 787-8 Dreamliner fleet

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China Southern Airlines plans sale of entire Boeing 787-8 Dreamliner fleet
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China Southern Airlines, the largest airline in Asia by fleet size, has announced plans to sell its entire fleet of 10 Boeing 787-8 Dreamliner aircraft along with two spare GEnx-1B70/P2 engines. The sale will be conducted through open bidding, as stated in an official notice on the airline's website. These aircraft have been in service for over a decade and are expected to be delivered to the buyer between 2025 and 2026, pending board approval.

The decision marks a shift in China Southern's fleet strategy as it focuses on modernizing its widebody fleet. The Boeing 787-8 Dreamliner was first introduced by China Southern in 2013, making it the first Chinese airline to operate this model. Initially used on long-haul and domestic routes, the aircraft later became integral to operations in Xinjiang, serving major cities like Beijing, Shanghai, and Chengdu.

Over time, the Boeing 787-8 has been overshadowed by the larger Boeing 787-9 due to its smaller passenger capacity and higher per-seat costs. The 787-9 offers greater seating capacity and improved operational efficiency, making it more suitable for modern fleets.

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"China Southern’s intent to sell all 10 of its 787-8s aligns with a broader industry trend among Chinese airlines to phase out older widebody aircraft in favor of more efficient models," reflecting a move towards narrowbody planes better suited for post-pandemic recovery in domestic and regional markets.

This sale highlights differing trends in the global widebody aircraft market. While demand has increased globally, particularly in regions like the Middle East and Europe, China's international aviation market recovery lags behind. According to the International Air Transport Association (IATA), global passenger traffic reached record levels in September 2024 due to strong transatlantic travel. However, Chinese airlines face challenges restoring pre-pandemic capacity on long-haul routes.

For China Southern Airlines, reducing its widebody fleet is seen as a tactical response to current market conditions. By concentrating on narrowbody aircraft, the airline aims to manage growth conservatively and align its fleet with market demand.

The sale of these aircraft signifies not only an end of an era but also a strategic pivot toward a leaner operation. As global aviation dynamics evolve, adapting fleet strategies will be crucial for maintaining competitive advantage.

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