Boeing's $37bn China deal for 300 planes takes off

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Boeing's $37bn China deal for 300 planes takes off

On Wednesday, Boeing Co. confirmed that they've won the Chinese deal according to which they will be selling three hundred planes to China, worth nearly $37 billion.

GE officials said President Donald Trump and Chinese President Xi Jinping, as well as U.S. Commerce Secretary Wilbur Ross and Chinese Vice Premier Wang Yang, were present during the signing of the partnerships.

The new order is for 40 Boeing 777s and 787s, and 260 737s.

Chinese airlines are looking to increase capacity after projections have the country to soon overtake the U.S. as the world's largest aviation market by passenger numbers. However, Reuters reports that it is not clear how many planes will be new business, as the deal may also cover 334 orders from undisclosed customers that purchased aircraft during this year.

"Boeing and China have a strong history of working together based on great mutual respect, and these orders build on that foundation", McAllister said.

Boeing and European rival Airbus (AIR.PA) have been jostling for market share in China, the world's fastest growing aviation market, with both opening assembly plants in the country.

This is not the first time China Aviation Supplies has been involved with large deals during previous government exchanges. Currently, China's aircraft fleets from all its airline companies are split between Boeing and Airbus jets. In May this year, the first Chinese-built passenger jet, the twin-engine C919, made its maiden flight from here at Shanghai's Pudong worldwide airport.

China's owned aircraft fleet is now quite equally split between Boeing and Airbus, but going by orderbook trends, Boeing seems to have gained a big lead in terms of the number of aircraft orders from China, said Corrine Png, chief executive of transport research firm Crucial Perspective. The majority of these airplanes are expected to be single aisle.

COMAC says that it has received orders for 730 C919 planes from 27 domestic and worldwide clients.

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