The deal to greet Trump: 300 old-new Boeing airplanes for China
The official visit of US President Donald Trump in China resulted in the announcement of a large deal between Boeing and China. The American airplane manufacturer and the China Aviation Supplier Holding Company (CASC) have signed an agreement for 300 jets during a ceremony in Beijing. The agreement was signed in the presence of Trump and China's President Xi Jinping, according to Boeing.
The jets are valued at more than $37 billion at list prices. The deal includes the delivery of 260 single-aisle Boeing 737 airplanes and 40 wide-body B787 and B777 models. However, the lion share of the deal is a previously signed US-China contract, dated 2013. Both Boeing and CASC representatives declined to comment whether this new agreement includes the previous orders.
Eager to show he can narrow the trade gap with China and create the promised jobs in the US, Trump touted an order for 300 Boeing aircrafts. Yet the bulk of the deal announced in the Beijing was old news, Bloomberg reports.
The Chinese airline market gets bigger every year — in 20 years China will surpass the US in terms of passenger traffic. In ten years Chinese inbound and outbound traffic will double and domestic is expected to grow 400%. In the next 20 years, China will need 6000 new aircrafts worth $954 billion, the major part of them — 4230 — medium range airliners.
In the first part of 2017, a joint venture between Boeing and Commercial Aircraft Corporation of China created a new Boeing 737 assembly facility. The construction cost $33 million and to open its doors next year.