A $19 billion order for Boeing Co. jets grabbed headlines around the world Wednesday morning as part of China President Hu Jintao’s visit to the White House.
But there was only one problem with the splashy deal — it was three years old.
Hu joined President Barack Obama in announcing $45 billion in U.S. exports to China, including a deal Boeing posted to its jet backlog in 2007.
Boeing is expected to begin deliveries of the 200-plane order this year and finish in 2013. The order is for Renton-built 737s and Everett-built 777s.
China’s Hu gave his approval on the order this month — a final step in the process, said Lauren Penning, a Boeing spokeswoman. But the order was far enough along for Boeing to consider it a firm order three years ago.
“Chinese government approval provides the necessary authority for our airline customers to continue purchase payments and take delivery of the aircraft,” wrote Mark Birtel, a Boeing spokesman, in an e-mail.
The Chinese airlines that will receive the 737s and 777s include Air China, China Southern, and Xiamen Airlines. Some of the orders previously had been listed under an undisclosed customer, while roughly half of the orders were attributed to the specific carriers.
“We value China’s support for our products and its confidence in Boeing,” said Jim Albaugh, president of Boeing’s commercial airplanes division. “With the outstanding support provided by the United States government, this deal is a win-win for the Boeing-China partnership, which is approaching its 40th anniversary.”
Finalizing aircraft deals, especially with China, can be a lengthy process, noted David Bachman, a professor at University of Washington’s Henry M. Jackson School of International Studies and a former chair of the university’s China studies program.
Despite the fact that Hu had no new orders to announce, Bachman said, China’s president still wanted to send a message: there’s more business to be had with China.
For Boeing, the potential in China is great. The company estimates China will need 4,330 new airplanes over the next 20 years and will be Boeing’s largest commercial airplane customer.
Several Washington state political leaders were taking part in White House events on Wednesday and stressed the importance of strong U.S.-China relations for the state. Gov. Chris Gregoire, who was expected to attend a White House dinner with Obama and Hu, noted that one in three jobs in Washington is tied to trade, therefore expanding exports to China would be a boost to the economy.
Rep. Rick Larsen, D-Wash, was on hand for Hu’s arrival to the White House.
“This deal will mean jobs at the Boeing plant in Everett, jobs at the many aerospace suppliers in northwest Washington, and a boost to the local economy,” he said.
American Airlines orders two 777s
On Wednesday, American Airlines announced a new, firm order for two Boeing Co. 777 jets. American is the first U.S. carrier to order 777-300 Extended Range aircraft. Several U.S. carriers have said they are considering placing new jet orders this year.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
