A Huge Boeing Order Coming

Boeing is inching closer to a sizeable contract with China as the United States deepens discussions.

The huge contract reported a month ago is now reportedly nearing completion, as David Perdue, the US Ambassador to China, said the trade deal, which is in the works, is close to being completed.

This trade deal will encompass many avenues in an effort to alleviate tensions between the United States and China. As part of that, there’ll be natural purchases of new aircraft.

In a bid to develop the aviation industry here, many Chinese carriers are expected to benefit from the new deal, which is likely to include hundreds of aircraft.

As air travel demand increases and airlines in China need to renew their aging passenger fleets, they will look to Airbus and Boeing to help power this, including the emerging COMAC, which has sold many aircraft to airlines in this part of the world.

At this stage, firm details on the aircraft deal remain unclear, but it’s a huge order that’ll boost Boeing’s backlog and assure China that new planes will be delivered when they need them most.

The deal will also mark the end of a long-standing drought in new Boeing jet purchases from China. This drought has been exacerbated by Boeing’s own struggles and the ongoing trade tensions between China and the United States.

Boeing Is Not The Only New Order Coming

While there’s been much talk about the upcoming aircraft order from China for 500 Boeing aircraft, it is now the only deal currently in the works from this location.

Airbus is also set to be part of a sizable deal that could include up to 500 planes, bringing the total to 1,000 and representing the most significant investment in aircraft in such a short period.

Unlike the Boeing deal, which is still being finalised, reports were suggesting the deal should’ve been announced months ago. However, due to geopolitical concerns, the timing didn’t work out, and the agreement has yet to be formally announced.

Despite this, work has continued behind the scenes to make this significant deal a reality for airlines in China sooner rather than later.

Air China, China Southern, Xiamen Air, China Eastern and Sichuan are all set to benefit by welcoming new aircraft from the European planemaker.

Naturally, depending on analysis, some airlines will likely take on a larger share of the Airbus jets, similar to what would occur with a prospective deal for Boeing planes. This depends on the requirements of each business.