Boeing signs deal to sell 300 planes worth $37 billion to China

[onebyone]

FILE PHOTO - Boeing's logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan, October 12, 2016. REUTERS/Kim Kyung-Hoon/File Photo


BEIJING/SHANGHAI (Reuters) - Boeing (BA.N) signed an agreement on Thursday to sell 300 planes to China Aviation Suppliers Holding Company worth $37 billion at list prices - part of a slew of deals announced during U.S. President Donald Trump's state visit to Beijing.

State-run China Aviation Supplies, which leases planes to Chinese airlines, said the order was for 260 B-737s as well as 40 B777s and B787s.

Analysts said, however, that some of the order may be among the more than 300 from undisclosed buyers posted this year and that it was not yet understood how much of the China deal would be entirely new business.

Boeing had 334 orders by unidentified customers as of Oct. 24, of which 290 were for its 737 narrow body family.

Representatives for Boeing did not immediately respond to requests for comment on whether the planes were new or existing orders.

Aircraft orders are also announced at list prices but buyers usually get discounts.

China Aviation Supplies has also played a prominent role in deals announced during previous government exchanges.

In July, it agreed to buy 140 aircraft from Airbus in a deal worth $23 billion at list prices during a visit by Chinese President Xi Jinping to Germany. In 2015, it was among three Chinese companies that agreed to buy 300 planes from Boeing during Xi's visit to the United States.

Boeing's latest signing in China follows an order for 39 wide-body jets from Singapore Airlines last month.

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 <603885.SS> and ICBC Leasing, the leasing arm of state bank Industrial and Commercial Bank of China Ltd <601398.SS>.


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(Reporting by Brenda Goh in SHANGHAI, Ben Blanchard and Stella Qiu in BEIJING; Additional reporting by Jamie Freed in SINGAPORE; Editing by Richard Borsuk and Edwina Gibbs)

https://finance.yahoo.com/news/boeing-signs-china-deals-worth-044423682.html

 

[MULUBJA]

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

 

[Cybernetics]

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

There is a joke in China calling it "air plane diplomacy". Whenever China and US relations gets tense relating economics or military, China usually reliefs the tension by buying a few billion dollars worth of Boeing products. It usually does the trick.

In addition China doesn't have B777 and B787 substitutes.

 

[武成王]

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

COMAC released a report on the capacity estimation of Chinese civilian plane market in 2014, it's estimated that in the next 20 years, China need 5541 aircrafts with a total value of 674 billion, so this new signed deal (300 Boeing planes) is not that big as you think. C919 is like a new baby, it need time to grow up.

 

[shadows888]

Because planes don't grow on trees. COMAC can't build planes fast enough to satisfy market demand.

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

 

[xyxmt]

China is new favorite country of Trump now, he is in love with China

 

[Tang_BJ]

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

Faa and caac made an agreement, it's a good deal.

 

[MULUBJA]

COMAC released a report on the capacity estimation of Chinese civilian plane market in 2014, it's estimated that in the next 20 years, China need 5541 aircrafts with a total value of 674 billion, so this new signed deal (300 Boeing planes) is not that big as you think. C919 is like a new baby, it need time to grow up.

Its all right.

China is new favorite country of Trump now, he is in love with China

See how fast the politics and diplomacy changes. Obama was most unwelcomed guy in CHina. Trump got red carpet. Turky shot down Russian plane. Now they want to buy S400 and US threats turkey not to buy it.

 

[shadows888]

Its all right.



See how fast the politics and diplomacy changes. Obama was most unwelcomed guy in CHina. Trump got red carpet. Turky shot down Russian plane. Now they want to buy S400 and US threats turkey not to buy it.

Cause Obama = the now epic failed "pivot to Asia"

Trump = we make the best "Deals"

 

[xyxmt]

See how fast the politics and diplomacy changes. Obama was most unwelcomed guy in CHina. Trump got red carpet. Turky shot down Russian plane. Now they want to buy S400 and US threats turkey not to buy it.

Its changing way too fast with Trump, one day a country is a devil and next day its his favorite country. This guy is easily manipulated, has no thinking of his own and makes decision based on what the last person told him.

 

[lcloo]

What happened to chinese civilian planes which were unveiled some time ago? Why such massive purchase.

China's passenger jet market is too huge for any one aircraft manufacturer.

This year alone, China has already placed orders + options for 800 Boeing jets (500 jets during Xi's visit to US early this year + 300 in Trump's visit). Airbus also got several hundreds planes ordered. While COMAC's C-919 has more than 700 planes ordered.

There are still more than 5,000 passenger jets orders to be given out for the next 2 decades.

Boeing made this prediction in 2016:-
Boeing Forecasts Demand in China for 6,810 Airplanes, Valued at $1 Trillion
China becomes world's first trillion dollar aviation market
Single-aisle demand accounts for 75 percent of new deliveries
China's wide-body fleet to triple in size over the next two decades

 

[KAL-EL]

Its changing way too fast with Trump, one day a country is a devil and next day its his favorite country. This guy is easily manipulated, has no thinking of his own and makes decision based on what the last person told him.

Absolutely 1000% correct! He has no ideology whatsoever.

 

[Martian2]

Its changing way too fast with Trump, one day a country is a devil and next day its his favorite country. This guy is easily manipulated, has no thinking of his own and makes decision based on what the last person told him.

Trump is highly intelligent. He threatens another country as a bargaining chip. If you don't do what I want, I will impose economic sanctions.

China gave him $253 billion in trade deals. In return, China got nothing.

I would say Trump came out far ahead in his unofficial negotiations with China.

Thus, it makes sense for Trump to praise China. I think he got everything that he wanted without having to make concessions in return.

 

[xyxmt]

Trump is highly intelligent. He threatens another country as a bargaining chip. If you don't do what I want, I will impose economic sanctions.

China gave him $253 billion in trade deals. In return, China got nothing.

I would say Trump came out far ahead in his unofficial negotiations with China.

Thus, it makes sense for Trump to praise China. I think he got everything that he wanted without having to make concessions in return.

253 billion is less than Chinese yearly exports to US, China already has everything they need from US (trade wise). Deals that China signed are mostly with boeing which they will sign it anyways until China has their own passenger Airplane.

as far as Trump being smart for being unpredictable, no country trusts US anymore because of this

 

[qwerrty]

it's not binding. china can threaten to cancel if trump try to do stupid sh1t. there's another huge deal with qualcomm too. also, not binding