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Boeing wins 43 widebody orders from Chinese carriers

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Bloomberg Seattle
Last Updated : Jan 20 2013 | 8:04 PM IST

Boeing won 43 orders for widebody planes from Chinese carriers, including its first 747-8 deal in more than a year, as economic growth spurs travel in the world’s most-populous nation.

Hong Kong Airlines agreed to buy 32 787s and six 777 freighters, Chicago-based Boeing said on its website today. Air China, the world’s biggest carrier by market value, said separately that it will order five 747-8s. Both deals were signed at the Hong Kong air show today.

The orders, worth about $10 billion at list prices, underscore the importance to Boeing and Airbus SAS of China, where passenger numbers will likely jump 69 per cent by 2015, according to the nation’s industry regulator. The country will help the Asia-Pacific region account for a third of global plane deliveries over the next 20 years, Boeing said today.

“Many airlines in this region are still thinking about growing capacity and China is the major market,” said Kelvin Lau, an analyst at Daiwa Institute of Research Pte in Hong Kong. “Sentiment is very positive.”

Hong Kong Airlines, which competes with Cathay Pacific Airways, has 18 planes and is due to receive six Airbus A330s this year. The closely held carrier, 46 per cent owned by HNA Group, will add its first all-business-class plane next year. The 787 order comprised 30 of the -9 variant and two -8 planes that will be configured for VIP travel.

HNA Group, which is controlled by the government of China’s Hainan province, also announced orders for 10 business jets. The company will buy five from Dassault Aviation and five from Gulfstream Aerospace, Director Adam Tan told reporters at the air show today.

The group’s business-jet and Boeing orders are worth almost $10 billion at list prices, said Yang Jianhong, president of Hong Kong Airlines.

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Air China’s 747-8s will be delivered in 2014 and 2015, the Beijing-based carrier said in a statement. The airline won “significant” discounts from the $1.54 billion list prices, it said. The carrier is the third airline worldwide to order the passenger plane and the first in China.

“It’s an important breakthrough for Boeing in the context of the 747-8 programme and its role in Asia where A380 orders have been strong,” said Derek Sadubin, COO at Sydney-based industry consultant Centre for Asia-Pacific Aviation.

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First Published: Mar 09 2011 | 12:16 AM IST

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