Boeing wins 43 orders for widebodies

Boeing Co. won orders from Chinese airlines for 43 wide-body planes with a list value of about $10 billion, including the first deal in a year for the delayed 747- 8 jumbo jet.

Hong Kong Airlines agreed to buy 32 787 Dreamliners and six 777 freighters, Chicago-based Boeing said on its website today. Air China Ltd. said separately that it will order five 747-8s. Both accords were signed at the Hong Kong air show.

The orders underscore the importance to Boeing and Airbus SAS of China, where passenger numbers probably will jump 69 percent by 2015, according to the nation's industry regulator. China will help the Asia-Pacific region account for a third of global plane deliveries over the next 20 years, Boeing said.

“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.”

Air China's 747-8s will be delivered in 2014 and 2015, according to a statement from the Beijing-based carrier. It said it won “significant” discounts from the $1.54 billion list prices. Air China 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 program and its role in Asia where A380 orders have been strong,” said Derek Sadubin, chief operating officer at Sydney-based consultant Centre for Asia-Pacific Aviation.

While Airbus has won 244 orders for its A380, Boeing's previous total for the 747-8 Intercontinental passenger model was 33 in about five years as a yearlong delay and a slowdown in travel during the global recession damped demand for the company's biggest-ever jet.

“As we look forward, we think we have a positive business case” for the 747-8, Randy Tinseth, Boeing's commercial-jet marketing chief, said in a Bloomberg Television interview in Hong Kong. The company sees more sales opportunities as older 747s reach retirement age and as travel rebounds, he said.

Boeing gained 88 cents, or 1.2 percent, to $71.76 at 10:03 a.m. in New York Stock Exchange composite trading. The shares rose 8.6 percent this year before today.

Airlines and leasing companies typically pay less than list prices for aircraft. The 747-8 is Boeing's most-expensive jetliner, listing for $317.5 million for the passenger model and $319.3 million for the freighter variant.

The first passenger 747-8 rolled out Feb. 13 from Boeing's factory in Everett, Washington, and its maiden flight is scheduled for this month. The first delivery, to Deutsche Lufthansa AG, is set for later this year. The Cologne, Germany- based carrier ordered 20 747-8 Intercontinentals in December 2006. Korean Air ordered five more three years later. Eight others have been sold for use as VIP planes.

The Intercontinental, the fifth variant of the 747, stretches the iconic hump and carries about 467 passengers in a typical three-class configuration. It features new engines and a longer wing. The plane will be more efficient to operate and more comfortable for travelers, Air China said.

The freighter version has won 74 orders from customers including Cathay Pacific Airways Ltd., an Air China affiliate. That jet has been flying for a year in tests and will be delivered in midyear. Cargolux Airlines International SA and Nippon Cargo Airlines Co. ordered the first freighters in 2005.

Hong Kong Airlines, which competes with Cathay Pacific, has 18 planes and is due to receive six Airbus A330s this year. The closely held carrier, 46 percent owned by HNA Group Co., 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, consisting of five from Dassault Aviation SA and five from Gulfstream Aerospace Corp.

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