Boeing gets $4.6b order from Shandong Airlines

China's Shandong Airlines has placed an order for 50, Boeing 737 aircraft, worth $4.6 billion (£2.7 billion) at list prices. Chinese carriers have been exploring the possibility of increasing their fleets to cater to a growing domestic demand for air travel.

Boeing sources said it had received an order from the airline, but refused to confirm the number of planes. The order still needs to be approved by the Chinese government.

"Boeing is delighted with Shandong Airlines' strong interest in the 737 airplane and we continue to work with them and the Chinese government to determine the best way to meet their need," the plane maker said in a statement.

A growing number of airlines hope to purchase fuel-efficient aircraft, triggering competition among plane makers. The 100-200-seat narrow-body, or single-aisle, aircraft market is forecast to generate $20 trillion (£12.8 trillion) worth of sales for plane makers over the next 20 years.

The sector is dominated by Airbus's A320 and Boeing's 737 aircraft. If approved, the latest order from China will be a big win for Boeing which is not only competing with Airbus but also likely to face competition from China's state-owned Commercial Aircraft Corporation of China (Comac).

Comac is also targeting the 100-200 seat plane market with its C919 aircraft.

The firm has already got 400 orders for the C919 - mostly from China - and many analysts expect it to win more orders, especially from domestic carriers.

- BBC