Boeing and Japan Transocean Air (JTA) finalized an order today for 12 Next-Generation 737-800 airplanes. The arrival of the new 737-800s in 2016 will mark the start of the airline’s fleet renewal program.

“This order is a key part of our strategy to bring the highest levels of comfort, amenity and convenience to the people of Okinawa, by continuing to operate the most reliable and fuel-efficient aircraft available today and in the future,” said Manabu Sato, president of Japan Transocean Air and executive officer at Japan Airlines.

The order, first announced as a commitment on March 27, is valued at $1.1 billion at list prices.  As part of the agreement, JTA will also have the flexibility to switch to the 737 MAX family of airplanes.

“We are honored that JTA has chosen to maintain an all-Boeing fleet of Next-Generation 737s,” said John Wojick, Senior Vice President of Global Sales, Boeing Commercial Airplanes. “The Next-Generation 737 will provide JTA with market-leading efficiency, reliability and passenger comfort, allowing JTA to continue to grow and prosper, while also allowing JTA and Boeing to build on a successful partnership for many years to come.”

Based in Okinawa, Japan’s southernmost major island chain, Japan Airlines Group member JTA currently operates a fleet of 737-400 airplanes on domestic routes linking Okinawa with major Japanese cities as well as other Okinawa islands.

The 737-800 is the best-selling version of the highly successful Next-Generation 737 family, the most technologically advanced airplanes in the single-aisle market. The Next-Generation 737’s market success has been confirmed by investors who consistently rank it as the most preferred single-aisle airplane due to its wide market base, superior performance efficiency and lowest operating costs in its class.

The airplanes will be fitted with Boeing’s latest Performance Improvement Package (PIP), delivering an additional 2 percent improvement in fuel efficiency for what is already the most fuel efficient single-aisle airplane in the market. The airplanes will also feature the popular passenger-inspired Boeing Sky Interior, with modern sculpted sidewalls and window reveals, LED lighting that enhances the sense of spaciousness and larger pivoting overhead stowage bins.

Boeing press release