{"id":137833,"date":"2026-03-28T11:11:00","date_gmt":"2026-03-28T05:41:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=137833"},"modified":"2026-03-28T03:07:32","modified_gmt":"2026-03-27T21:37:32","slug":"shandong-to-lease-10-737-jets-in-405-million-deal","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2026\/03\/28\/shandong-to-lease-10-737-jets-in-405-million-deal\/","title":{"rendered":"This Flag Carrier to Lease 10 Boeing 737 Jets in New $405 Million Deal"},"content":{"rendered":"\n

JINAN\u2014<\/strong> Shandong Airlines (SC), a subsidiary of China’s flagship carrier Air China (CA)<\/a>, has announced plans to lease 10 Boeing 737 aircraft in a deal totalling 2.88 billion yuan (approximately US$405 million)<\/strong>. The aircraft will be delivered in batches over the next two years.<\/p>\n\n\n\n

The deal includes 10-year leases for three Boeing 737-800 jets, 11-year leases for three additional 737-800s, and 12-year leases for four Boeing 737 Max aircraft.<\/p>\n\n\n\n

The announcement, filed by Air China with the Shanghai Stock Exchange, signals continued Chinese airline demand for American-built jets despite growing US-China trade tensions, SCMP<\/a> reported exclusively.<\/p>\n\n\n\n

\"Shandong
Photo: West Coast Aviation | Instagram, Follow Them for Latest Photos<\/figcaption><\/figure>\n\n\n\n

Shandong Airlines to Lease Boeing 737s<\/h2>\n\n\n\n

Air China disclosed the lease agreements through a formal stock market notice, identifying four domestic Chinese leasing companies as partners in the deal. They are Bank of Communications Financial Leasing, Xiamen Aircraft Leasing, Sichuan Saide Aviation Technology, and Minsheng Financial Leasing.<\/p>\n\n\n\n

The filing described the 10 aircraft as “relatively new” and “in good technical condition.” Air China stated that the transaction will “effectively supplement Shandong Airlines’ capacity and stabilise its fleet size,” while also helping to “improve the route network, strengthen market competitiveness and network allocation.”<\/p>\n\n\n\n

Independent aviation analyst Li Hanming noted that leasing, rather than purchasing, allows the airline to address an ageing fleet without the higher upfront cost of acquiring new planes. At least six of the 10 aircraft being leased are used jets.<\/p>\n\n\n\n

About Shandong Airlines: Fleet, Routes, and Financials<\/h4>\n\n\n\n

Shandong Airlines is a regional airline based in Jinan (TNA), Shandong Province, China, and operates an all-Boeing<\/a> 737 fleet of 139 aircraft serving over 380 routes. The carrier operates more than 4,400 weekly flights to over 70 cities across China and also serves international destinations in Japan, South Korea, and Southeast Asia.<\/p>\n\n\n\n

The airline’s main operating hub is Jinan Yaoqiang International Airport (TNA) and Qingdao Liuting International Airport (TAO). The carrier is well known for its longstanding preference for Boeing aircraft and has historically maintained an all-Boeing narrowbody fleet.<\/p>\n\n\n\n

Founded in 1994 and currently loss-making, the airline faces financial pressure compounded by an older fleet. Analyst Li confirmed that some of the carrier’s existing aircraft are “too old,” making the lease deal a practical step toward fleet renewal without heavy capital expenditure.<\/p>\n\n\n\n

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Photo- Wikimedia Commons; Compiled By Aviation A2Z<\/figcaption><\/figure>\n\n\n\n

Boeing Leases Amid US-China Trade Tensions<\/h2>\n\n\n\n

The deal comes weeks before a planned visit by US President Donald Trump to China, where trade issues were expected to be discussed with Chinese President Xi Jinping. That visit has since been postponed to mid-May.<\/p>\n\n\n\n

China has a history of using large Boeing aircraft purchases as a diplomatic and trade tool. During Trump’s 2017 state visit to China, Beijing agreed to purchase 300 Boeing jets, a deal widely viewed as a measure to reduce America’s bilateral trade deficit with China.<\/p>\n\n\n\n

However, the procurement of Boeing aircraft has become more complicated in recent years. The Boeing 737 Max was grounded globally in 2019 following two fatal crashes that killed 346 people, damaging the manufacturer’s reputation in China and elsewhere.<\/p>\n\n\n\n

More recently, Chinese airlines have placed orders for over 100 Airbus aircraft and have also added domestically produced COMAC C919 jets<\/a> to their fleets, reflecting a deliberate effort to diversify away from a single foreign supplier.<\/p>\n\n\n\n

\"Boeing
Photo: Collins Aerospace<\/figcaption><\/figure>\n\n\n\n

Lease Structure and Strategic Rationale<\/h2>\n\n\n\n

The lease terms range from 10 to 12 years across the 10 aircraft, reflecting a long-term commitment to maintaining fleet capacity.<\/p>\n\n\n\n

The varying lease durations across the Boeing 737-800 and 737 MAX variants<\/a> suggest a phased approach to fleet modernisation that balances cost management with operational planning.<\/p>\n\n\n\n

For a carrier operating 139 planes and running more than 4,400 weekly flights, the addition of 10 aircraft provides meaningful capacity uplift.<\/p>\n\n\n\n

The deals also reinforce Shandong Airlines’ status as a Boeing-loyal operator within the broader Air China group, even as peer carriers hedge their exposure to American manufacturers.<\/p>\n\n\n\n

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Air China Cashes Out HK$1.32 Billion Slice of Cathay Pacific<\/a><\/blockquote>