Fiji Airways will take delivery of 737 MAX 8 aircraft via a 12-year sales and leaseback financing arrangement as part of a package deal with GE Capital Aviation Services, Boeing and CFM International.

Boeing has secured a third 737 MAX customer in Oceania with Fiji Airways ordering five 737 MAX 8s for first delivery in 2018.

Fiji Airways said the 737 MAX 8 would “replace its existing narrow-body fleet.” Currently, Fiji Airways has five 737s in its fleet, comprising one 737-700 and four 737-800s, that are used on short- and medium-haul routes to Australia, New Zealand, Hawaii, Kiribati, Samoa, Solomon Islands, Tonga and Vanuatu.

Fiji Airways Chief Executive Andre Viljoen said the selection of the new generation Boeing narrow bodies came after an “extremely exhaustive procurement and selection process.”

Further, Viljoen said the aircraft would be delivered via a 12-year sale and leaseback financing arrangement as part of a package deal with GE Capital Aviation Services, Boeing and engine manufacturer CFM International.

“This is a major capital decision that had to be done correctly so we followed a rigorous, thorough and transparent process to find the right solution,” Viljoen said in a statement. “As a consequence of the fierce competition between the rival bidders and the extensive process followed by Fiji Airways, we have achieved a ground-breaking package deal that represents excellent value for our shareholders, customers and stakeholders.”

Fiji Airways joins Virgin Australia and Air Niugini from the region as a MAX customer.

Virgin Australia is due to receive the first of 40 MAX aircraft in 2018, while Air Niugini is expected to take delivery of four MAX aircraft from 2020.

Boeing Commercial Airplanes Senior Vice President for Asia Pacific and India sales Dinesh Keskar said, “Boeing is honored that Fiji Airways has selected the 737 MAX for its fleet renewal plan and we look forward to welcoming Fiji Airways as our newest 737 MAX customer.”

“The 737 MAX, with its superior economics and capability, is the ideal airplane for Fiji Airways, allowing them to expand into new markets throughout Oceania and Southeast Asia.”