Hangzhou YTO Express Becomes Launch Customer for Boeing 737-800BCF

China's start-up cargo carrier, Hangzhou YTO Express Airlines (YG) has signed a launch customer agreement (LCA) with Boeing Co. for 15 Boeing 737-800BCFs (Boeing Converted Freighter) on President Xi Jinping's visit to the United States. Following the signing of this LCA, YTO Express becomes the launch customer for the 737-800BCF.

A group of Chinese companies signed Tuesday several deals with U.S. plane maker Boeing to buy 300 Boeing aircraft in Seattle during President Xi's visit.

Yu Weijiao, president of YTO Express and Stanley A. Deal, senior vice president of Boeing Commercial Airplanes signed the deal for 15 737-800BCFs on behalf of both parties at the signing ceremony.

The 737-800 BCF is still within the product development cycle, but Boeing do have authority to offer it to customers. Boeing's newly launched 737-800BCF features new, more efficient, engines and upgraded fuel and baggage capacity. "From our analysis a 737-800 Boeing Converted Freighter can have 15 to 20% better operation cost per payload-ton compare to 737-300 converted freighters."

President Xi, accompanied by Boeing executives, viewed final assembly lines for the 787 Dreamliner, 777 and 747-8, as well as aircraft components made by Chinese aviation suppliers. The president also boarded the Xiamen Airlines 787, Registration B-2763, experienced the first class and business class cabins, toured the cockpit and spoke with Boeing employees and the 787 chief pilots about their work on airplanes built for Chinese carriers.

On June 1, Civil Aviation Administration of China (CAAC) issued the operating license to Hangzhou YTO Express Airlines, marking an important step toward its maiden flight scheduled on September 26, 2015.

The start-up cargo carrier has taken delivery of three Boeing 737-300 freighters (Registration B-2505, B-2505 and B-2608). The first B737-300F was deployed for trail operation in August, with the other two put into operation in November and December.

Backed by 400 million yuan in start-up capital, Hangzhou YTO Airlines is owned by the Shanghai YTO Express Investment (Group) Co Ltd (90%) and two individuals. The Hangzhou-based airline is licensed to provide scheduled domestic and international air cargo services, using an initial fleet of three Boeing 737-300Fs.