Boeing clinches record deal to sell 300 airplanes to Chinese firms

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Boeing announced the purchase of 300 aircrafts, by a group of Chinese firms for $38 billion, on 23 September.

The order, announced to coincide with President Xi Jinping’s visit to a Boeing plant near Seattle, comprises 240 planes for Chinese airlines and 60 aircraft destined for leasing companies.

The deal sets a new record, surpassing an order finalised in 2015 by IndiGo for 250 Airbus planes worth $26.5 billion.

While 190 are the narrow-bodied 737s, the remaining 50 are wide-bodied aircraft. The leasing firms ICBC and CDB Leasing will acquire 60 of Boeing 737s under the deal.

The order was placed by the China Aviation Supplies Holding Company (CASC) on behalf of Chinese carriers and leasing companies. “China is a global market for commercial airplanes,” said commercial aviation chief for Boeing, Ray Conner.

China has accounted for one in four of Boeing’s 2015 deliveries, Conner said in a message to employees. The US aerospace giant is sparring with Airbus for preeminence in the giant market.

The final value of the 23 September pact could be lower than $38 billion depending on whether there are rebates offered in final talks.

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