Chinese airlines buy 42 Boeings

BEIJING – Four Chinese airlines have signed contracts to buy 42 of Boeing’s new-generation 787 planes worth US$5,04 billion (N$32,76 billion), officials said yesterday.

The carriers involved are Air China (15 planes), China Eastern Airlines (15), Shanghai Airlines (nine) and Xiamen Airlines (three). George Liu, Vice President of communications at Boeing China, told AFP negotiations were continuing with Hainan Airlines and China Southern Airlines which are also considering buying the jet.”Forty-two planes are involved.The other deals with the other airlines are still in the works,” he said.It was not immediately clear how many planes Hainan and China Southern might buy although in January Boeing signed an initial agreement to sell 60 787s worth US$7,2 billion to Chinese airlines.That was followed by an announcement in late July by the Chinese government that they would finalise the contracts for a combined US$6 billion for 50 787s this month.In Hong Kong share trading in China Eastern Airlines and Air China was suspended on the stock exchange yesterday ahead of news on the deal China’s fast growing aviation industry needs more planes to meet demand.The figure of 121 million passengers carried last year represented 16 per cent annual growth that was twice the world average, according to Chinese statistics.Production of the 787, a long-haul 217-seat plane which Boeing says is more fuel-efficient than other jets, will begin in 2006.The first flight is expected in 2007 with deliveries starting in 2008.The new Boeing plane faces stiff competition from the European consortium Airbus, with the growing Chinese market seen as one of the major prizes.Earlier this year China signed a deal for five Airbus A35Os, a new model which is a more sophisticated version of its A330 with modifications to improve range.The plane is being developed as a direct challenge to the 787.-Nampa-AFPGeorge Liu, Vice President of communications at Boeing China, told AFP negotiations were continuing with Hainan Airlines and China Southern Airlines which are also considering buying the jet.”Forty-two planes are involved.The other deals with the other airlines are still in the works,” he said.It was not immediately clear how many planes Hainan and China Southern might buy although in January Boeing signed an initial agreement to sell 60 787s worth US$7,2 billion to Chinese airlines.That was followed by an announcement in late July by the Chinese government that they would finalise the contracts for a combined US$6 billion for 50 787s this month.In Hong Kong share trading in China Eastern Airlines and Air China was suspended on the stock exchange yesterday ahead of news on the deal China’s fast growing aviation industry needs more planes to meet demand.The figure of 121 million passengers carried last year represented 16 per cent annual growth that was twice the world average, according to Chinese statistics.Production of the 787, a long-haul 217-seat plane which Boeing says is more fuel-efficient than other jets, will begin in 2006.The first flight is expected in 2007 with deliveries starting in 2008.The new Boeing plane faces stiff competition from the European consortium Airbus, with the growing Chinese market seen as one of the major prizes.Earlier this year China signed a deal for five Airbus A35Os, a new model which is a more sophisticated version of its A330 with modifications to improve range.The plane is being developed as a direct challenge to the 787.-Nampa-AFP