China signs US$37B deal to buy 300 Boeing planes

China signs US$37B deal to buy 300 Boeing planes

China signs US$37B deal to buy 300 Boeing planes

According to analysts, some of the orders may be amongst the 300 undisclosed buyers posted this year by the company and that it was not yet understood how much of the newest deal with China would be entirely new businesses.

The partnerships were signed in the presence of Trump and Chinese President Xi Jinping, as well as U.S. Commerce Secretary Wilbur Ross and Chinese Vice Premier Wang Yang, GE said in a statement.

Chinese airlines are looking to increase capacity after projections have the country to soon overtake the USA as the world's largest aviation market by passenger numbers.

Plane makers also acknowledge a multi-step wooing process with customers such as China.

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. The order was worth $7.4 billion at list prices.

The deals may provide some comfort to both Airbus and Boeing, as China continues to invest heavily in developing its own aviation industry.

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

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

China's owned aircraft fleet is now equally split between Boeing and Airbus, but going by order book 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. In 2015, it was one of the three Chinese companies that agreed to buy 300 planes from Boeing when President Xi was in the United States.

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.

Juneyao Airlines Co Ltd. agreed to an engine and fix agreement valued at $1.4 billion.

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

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