2014 readers choice results
Article updated: 3/1/2013 3:59 PM

Boeing wins Air China orders

All Nippon Airways’ Boeing 787 “the Dreamliner” passenger jets park on the tarmac at Haneda airport in Tokyo. Though Dreamliners remain grounded, Boeing is selling smaller jetliners.

All Nippon Airways' Boeing 787 "the Dreamliner" passenger jets park on the tarmac at Haneda airport in Tokyo. Though Dreamliners remain grounded, Boeing is selling smaller jetliners.

 

Associated Press/Jan. 18, 2013

 1 of 1 
 
text size: AAA
By Bloomberg News

Air China Ltd., the nation's biggest carrier by market value, agreed to buy two Boeing Co. 747-8 aircraft in the planemaker's first sale of the models this year.

Air China also will purchase one wide-body 777-300 plane, 20 single-aisle 737-800 jets and eight 777 freighters, according to a statement. The planes have a combined catalog value of $4.8 billion and Boeing granted "significant price concessions" through credit agreements, the airline said in the statement.

Advertisement

Boeing, based in Chicago, hasn't sold more than five 747-8 aircraft a year since Deutsche Lufthansa AG purchased 19 of the planes in 2006, and concern that persistently weak demand could prompt the company to curtail production has been mounting. Today's orders may help alleviate some of the pressure, according to Stephen Levenson of Stifel Financial Corp.

"There has been concern that the dearth of orders could mean whitetails on the tarmac or insufficient demand to keep build rates at the current two per month," the New York-based analyst wrote in a note to clients today. Boeing "has been making a major effort to book more 747-8 orders particularly from carriers in the Asia-Pacific territory that may be best- suited to their use."

That helps to balance the production schedule and backlog, said Levenson, who recommends buying the shares.

The 747-8, 777-300 and 737 aircraft ordered today have a catalog value of about $2.6 billion, while the 777 freighters command about $2.2 billion. The agreement also includes the right to sell seven older 747 freight models back to Boeing and the option to convert four of the new 737 orders to one additional 777-300 jetliner, Beijing-based Air China said.

Air China rose 3.5 percent to HK$6.50 at the close in Hong Kong today. Boeing gained 0.5 percent to $77.28 in New York.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Latest Video

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    MarketsReport

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity

    BusinessDirectory

    Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

    Don't see your town listed? Visit our full directory to begin your search.