Boeing grabs orders at China’s air show

Published 12:01 am Wednesday, March 9, 2011

The past 48 hours have been good ones for the Boeing Co.’s order books.

Chinese carriers gave Boeing a boost Monday, ordering 43 widebody aircraft. On Tuesday, Boeing raked in another big order — for 33 737 jets — from leasing powerhouse International Lease Finance Corp. Altogether, the ord

ers are worth more than $12 billion at list prices, though jet makers discount heavily.

The flurry of orders started at the Hong Kong air show Monday. Boeing forecast that Asia will need 10,320 new airplanes over the next 20 years, or about a third of the world total. Airbus shares a similar prediction.

“As we look to the future, we look to Asia. Growth in this market will clearly change the landscape of aviation,” said Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes.

Late Monday, Boeing and Air China signed an agreement for five 747-8 passenger planes. The deal still requires government approval and will be posted to Boeing’s Web site thereafter.

The Air China order gives a boost to Boeing’s 747-8 passenger plane program. The passenger version, called the Intercontinental, had only 33 orders prior to Air China’s order. The freighter version of the updated jumbo jet has 74 orders.

“Air China has been operating 747s since the 1980s,” said He Li, vice president of Air China. “The new, high-capacity Boeing 747-8 Intercontinental will deliver exceptional economics and a great flying experience to our customers.”

Boeing also signed a preliminary agreement with HNA Group’s Hong Kong Airlines for 30 787-9s, six 777 freighters, and two 787-8 VIP jets. After it’s finalized, the order from Hong Kong Airlines will be one of Boeing’s largest for its 787 Dreamliner in the past few years.

Orders for the Dreamliner have slowed since the new 787 began running into delays in 2007. In 2009 and 2010, Boeing had more cancellations for its Dreamliner than it had new orders. The company plans to deliver the first 787 this year.

International Lease Finance Corp. also placed a firm order with Boeing for 33 of its 737 single-aisle jets.

“This ILFC order is a reflection of our performance improvement initiatives and our goal to offer the best product in every segment we serve,” said Marlin Dailey, vice president of sales for Boeing.

ILFC also signed a tentative deal for up to 100 Airbus A320 New Engine Option jets. But it cancelled an order for 10 A380 super jumbo jets, Airbus said Tuesday. The memorandum of understanding includes 75 A320 neo and 25 A321 neo aircraft. Along with the new deal, ILFC said it no longer wants the order for 10 A380s.

“With 104 wide bodies on order and fewer than a dozen single aisles it makes perfect sense to rebalance our order book and position ILFC strategically on the fuel-efficient neo,” said Henri Courpron, ILFC Chief Executive Officer.

Airbus plans to deliver its first A320 neo, which is expected to be 15 percent more fuel-efficient than its existing A320, in 2016.

In a statement, Airbus’ John Leahy expressed confidence in the A380 program.

“The A380 is a long term program,” he said. “Over the next 20 years we see a market of over 1,300 passenger aircraft in the very large aircraft segment.” Airbus additionally announced an order Tuesday from Turkish Airlines for 10 A321s and three A330 freighters.