Boeing [NYSE: BA] and Kunming Airlines today announced a Memorandum of Understanding for the purchase of 10 737 MAX 7 airplanes at the 2016 Farnborough International Airshow.

With this agreement, Kunming Airlines, an all-Boeing fleet customer in China, would become launch customer in China for the improved 737 MAX 7 airplane. The agreement further enhances the strategic cooperation between Boeing and Kunming Airlines.

“We look forward to welcoming Kunming Airlines as a 737 MAX 7 launch customer in China and finalizing the deal in the near future,” said Boeing Commercial Airplanes President and CEO Ray Conner. “These new airplanes will support Kunming Airlines’ strategic plan to establish an extensive flight network throughout China and increase their global reach.”

The improved 737 MAX 7 will open new opportunities for airlines and provide exceptional performance out of high elevation airports. The airplane offers 12 more seats in a 2-class interior configuration and more than 20 in a maximum seating configuration, compared to the Next-Generation 737-700. It will also use 5 percent less fuel per seat and have 500 nautical miles (926 km) more range capability.

Kunming Airlines, based at Changshui International Airport in the capital city of Yunnan province, began operations in 2009.  The carrier has experienced rapid and steady growth in recent years by leveraging its regional advantages. The carrier currently serves more than 40 cities across China by operating a fleet of eight 737-700s and 11 737-800s. Shenzhen Airlines is the major shareholder of Kunming Airlines.

Boeing press release