Boeing Wins $37 Billion China Orders for 300 Aircraft

Reuters

Reuters

Boeing and China Aviation Suppliers Holding Company (CASC) have signed an agreement for 300 aircraft with a theoretical value of $37bn at list prices.

"China is a valued customer and key partner, and we're proud that Boeing airplanes will be a part of its fleet growth for years to come", said McAllister.

According to Flight Fleets Analyzer, Boeing has received 1,074 passenger aircraft orders from unannounced commercial customers, a majority of which are likely Chinese airlines. In 2015, it was among three Chinese companies that agreed to buy 300 planes from Boeing during Xi's visit to the United States. The state has previously placed large orders through a centralized buyer before dividing them up among its airlines and leasing companies, including a $22 billion deal with China Aviation Supplies that was announced in July.

China Aviation Supplies leases planes to Chinese airlines. Talks were also underway for the planemaker to sell more A380 superjumbo jets to China.

Boeing says the deal includes orders and commitments for an unspecified combination of single-aisle and twin-aisle aircraft. Lessors ICBC Financial Leasing Co. and CDB Leasing Co. took another 60 737s.

According to Boeing's latest market outlook, China is expected to need 7,240 new aircraft over the next 20 years, valued at almost 1.1 trillion USA dollars. The plane was built and designed by Commercial Aircraft Corp. of China (COMCAR), which is owned by the government.

According to some Chinese news reports, the 300 aircraft include 260 Boeing 737 family aircraft and a total of 40 aircraft from the 787 and 777 families. This followed a $6 billion order for 20 Airbus SE A350 planes that the Guangzhou-based carrier announced six months earlier.

The deal comes just as China's first home-grown passenger jet, the C919, is about to start a new phase of in-flight testing.

The deal, which was signed in Beijing on November 9, coincided with U.S. president Donald Trump's state visit to China.

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