Chinese carrier Ruili Airlines has signed a letter of intent with SMBC Aviation Capital for the placement of two aircraft, as it builds towards a planned fleet of more than 40 jets.
It’s the first commitment by the carrier with an overseas leasing company and will see two Boeing 737 MAX 8 aircraft delivered to the airline, which is currently celebrating its fourth anniversary.
Kunming-headquartered Ruili is a new customer for SMBC, with the first aircraft to be delivered next year. The full-service carrier flies domestic and international routes to destinations in China and across Southeast Asia. The single-aisle MAX 8s will be powered by CFM International’s LEAP-1B engines.
Chairman of Jingcheng Group Co.LTD., Dong Le Cheng, said, “We are looking to considerably expand our fleet in the coming years and these new aircraft will help achieve our target of adding 40 aircraft by 2021. These aircraft will help us achieve enhanced operational efficiency and our service experience as the Chinese market for air travel continues to grow.”
Peter Barrett, CEO of SMBC Aviation Capital, added, “We look forward to building on our new relationship with Ruili Airlines with the placement of these two aircraft. China is a fast-growing market that is seeing increased demand for high-quality aircraft that offer the latest technology and this deal allows us to further extend our presence in the region.”
Ruili is based at Kunming Changshui International Airport and currently flies Boeing 737s. Established in 2014, it is wholly owned by the Yunnan Jingcheng Group. As of January this year its fleet consisted of 16 B737s.
Last year at the Paris Airshow, Boeing confirmed the signing of a memorandum of understanding with Ruili for 20 B737 MAX aircraft in a deal worth around US$2.2 billion at current list prices.
The airline reportedly also has other MAX 8s planned to be leased from Huaxia Financial Leasing (three), CDB Aviation Leasing (two) and AVIC Leasing (eight).
