Boeing Inks Deal for 300 Planes with China Aviation Suppliers

Boeing has signed a deal Thursday the will have the airplane maker selling 300 planes worth over $37 billion to the China Aviation Suppliers Holding Company. This was one of several deals that were announced during a state visit by U.S. President Donald Trump to Beijing.

China Aviation Supplies is state-run and leases planes to airlines in China, said the Boeing order that included 40 B777s, 40 B787s and 260 B737s.

Analysts said that part of the order might be amongst the more than 300 planes from buyers who were undisclosed that were posted during the year and that it was not yet known how much of the deal in China was new business.

Boeing received 334 orders that were from unidentified clients as of October 24, with 290 of them for the 737 line of narrow body aircraft.

Boeing representatives did not respond immediately to requests asking for comments on if the planes had been part of new orders or one that were already in existence.

Aircraft orders contain list prices however buyers are usually given discounts that end up significantly lowering the prices.

China Aviation Supplies played prominent roles in deals that were announced during the exchanges of previous governments.

This past July, the company announced it agreed to purchase 140 Airbus aircraft in a deal that had list prices that totaled $23 billion. The announcement of that deal was made during a visit to Germany by Xi Jinping the President of China.

In 2015, three companies in China agreed to purchase 300 aircraft from Boeing with the announcement of that deal coming when Xi made a state visit to the United States.

The latest signing by Boeing in China comes after an order received last month by Singapore Airlines to purchase 39 wide body aircraft from the U.S. based company.

Earlier Thursday, General Electric a maker of aircraft engines said it signed new deals in China that were worth more than $3.5 billion, including one with ICBC Leasing, which is the leasing arm of Industrial and Commercial Bank a state operated bank and Juneyao Airlines.

U.S. President Donald Trump visited China this week and announced that his visit helped to finalize more than $250 billion worth of new deals between China and the U.S. However, it is not known if the new deals will end up living up to the lofty expectations that the president said they would.

Leave a Reply

Your email address will not be published. Required fields are marked *