Boeing Co. has inked a deal with China Southern for a dozen 787-9 Dreamliners. The deal is worth neatly $3.2 billion as per the list price. These Dreamliners are scheduled to be delivered over the course of three years, starting in 2018.

China Southern is the first Boeing 787 customer from China. It currently has 16 Dreamliners through financial and operating lease agreements. Its total fleet comprises 684 planes.

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The deal is likely to come as a relief to Boeing which is grappling with a shrinking market for twin-aisle planes. On the other hand, it will also strengthen China Southern's long haul fleet.

China Southern is the country's largest airline by fleet size. It expects to augment its fleet to 1,000 aircraft by 2020. The airline also expects its annual passenger traffic to surpass the 160 million mark by 2020. The airline currently has the Boeing 777,787 and 747 aircraft, among others, in its fleet. China Southern expects the deal to strengthen the construction of Guangzhou hub.

The Dreamliner 787-9 features six-meter larger fuselage than the 787-8, enabling it to carry more passengers and cargo over a longer distance. It also allows for 20 percent less fuel use and 20 percent fewer emissions than a similarly-sized airplane.

China is one of the fastest growing aviation markets in the world. It is likely to overtake North America as the world's largest aviation market in the next two decades. Last year, President Xi Jinping signed a deal for 300 jets at $38 billion during his state visit to the United States. 

TagsBoeing, China Southern, Boeing 787