Boeing Gains 2nd Chinese Carrier for Cargo Conversion Program

Boeing Co. said it has a commitment from another Chinese cargo carrier to purchase 737-800s that the U.S. plane maker would convert to cargo use under a planned conversion program.

The Chicago company said that under the preliminary accord, China Postal Airlines would acquire 10 of Boeing's next-generation 737s single-aisle passenger jets that would be converted to freighters.

Earlier this year Boeing disclosed it has a commitment from China's YTO Express Airlines to buy an unidentified number of 737-800s for conversion.

The moves come as rival Airbus Group SE this year revived plans to offer conversions of its narrow-body passenger aircraft, the A320 and A321. The European plane maker will work with Singapore's ST Aerospace, an aircraft maintenance specialist, with the first completed conversions due for delivery in 2018.

Passenger-to-freighter programs typically take aircraft that are reaching the end of their service life in passenger service and turn them into cargo planes to give them a new lease on life.

China Postal's agreement with Boeing also includes seven Boeing 757-200s for conversion to cargo haulers.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 15, 2015 09:05 ET (14:05 GMT)

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