US aerospace giant Boeing on Monday announced an order for five 737 MAX 7 aircraft from Jetlines, a new Canadian discount airline set to launch next year.
The order has a list price of $438 million, and Jetlines has options to buy an additional 16 of the aircraft, Boeing said.
"Boeing is proud to partner with Jetlines as it begins a journey to offer low airfares to passengers across Canada," said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes, in a statement.
Privately-owned Jetlines plans to begin domestic Canadian air service in mid-2015 from a base at the Vancouver International Airport, addressing what it said is "currently an unserved market of price-sensitive customers in Canada."
Jetlines said it intends to select routes which avoid direct competition with currently operating airlines where possible, and focus on cost discipline in order to keep operating costs low.
"This agreement with Boeing is a major milestone for Jetlines," said Jim Scott, chief executive of Jetlines. "We are thrilled to be partnering with Boeing and look forward to introducing the 737 MAX 7 into our fleet."
Dow member Boeing shares were up 1.1 percent in morning trade on the New York Stock Exchange.