Trump's China Visit: Boeing Inks $37 Billion Deal To Sell 300 Aircraft

Ivan Schwartz
November 12, 2017

Earlier on Thursday, aircraft engine marker General Electric said it had signed deals worth $3.5 billion in China, including an agreement with Juneyao Airlines Co Ltd and ICBC Leasing, the leasing arm of state bank Industrial and Commercial Bank of China Ltd.

Boeing will sell 300 planes worth $37 billion (£28.2 billion) at list prices to state-run China Aviation Supplies Holding Company, under a deal signed today - just one of several agreements announced during U.S. President Donald Trump's state visit to Beijing.

The deals included an engine and fix deal for GEnx-1B engines from Juneyao Airlines Co Ltd worth $1.4 billion at list prices, and another $1.1 billion order for 80 Leap-1B engines to power 40 Boeing 737 MAX Aircraft from ICBC Leasing, the leasing arm of state bank Industrial and Commercial Bank of China Ltd, GE said. The breakdown between firm orders and non-binding commitments was not immediately available.

On the deal, McAllister has said that, "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".

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

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Therefore, the actual transaction price of this order will likely be much lower than the US$37 billion, the report said.

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.

China has a component role on every Boeing commercial aircraft model - the 737, 747, 767, 777 and the 787 - and over 9,000 Boeing aircraft fly worldwide with China-built parts and assemblies.

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. The announcement of that deal was made during a visit to Germany by Xi Jinping the President of China.

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

Other reports by GizPress

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