Boeing and Chinese airlines in talks for US$30b mega-deal that trade war could derail
Boeing has been negotiating one of the largest orders ever of widebody jetliners with Chinese airlines even as tensions between Washington and Beijing escalate, say people familiar with the talks. The discussions centre on about 100 twin-aisle jets: 787 Dreamliners as well as 777X planes, the newest long-range aircraft in Boeing’s line-up, said one of the people, who asked not to be named as the talks are private. Negotiations have focused in particular on the 777-9 variant, the planemaker’s costliest jet with a US$442.2 million sticker price, ahead of the model’s expected first flight later this month. No deal is imminent, the people cautioned, and the trade war is a major complication for all involved. The Chinese side is waiting for guidance from the government before pushing forward with the discussions, according to some of the people, as the tit-for-tat fight between the US and China intensifies. The battle over trade and technology between the world’s two biggest economies has entered a new phase, with allegations that China reneged on commitments made at the negotiating table triggering a fresh round of tariffs and smashing a months-long detente. Boeing, under pressure over the worldwide grounding of its 737 MAX plane, is the largest US exporter and the deal would help reduce its home country’s trade deficit with China. The potential order would be worth more than US$30b before customary discounts, depending on the mix of aircraft. The manufacturer declined to comment, while China’s Civil Aviation Administration did not immediately respond to a request for comment.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-06-06/general/boeing-and-chinese-airlines-in-talks-for-us-30b-mega-deal-that-trade-war-could-derail
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Boeing and Chinese airlines in talks for US$30b mega-deal that trade war could derail
Boeing has been negotiating one of the largest orders ever of widebody jetliners with Chinese airlines even as tensions between Washington and Beijing escalate, say people familiar with the talks. The discussions centre on about 100 twin-aisle jets: 787 Dreamliners as well as 777X planes, the newest long-range aircraft in Boeing’s line-up, said one of the people, who asked not to be named as the talks are private. Negotiations have focused in particular on the 777-9 variant, the planemaker’s costliest jet with a US$442.2 million sticker price, ahead of the model’s expected first flight later this month. No deal is imminent, the people cautioned, and the trade war is a major complication for all involved. The Chinese side is waiting for guidance from the government before pushing forward with the discussions, according to some of the people, as the tit-for-tat fight between the US and China intensifies. The battle over trade and technology between the world’s two biggest economies has entered a new phase, with allegations that China reneged on commitments made at the negotiating table triggering a fresh round of tariffs and smashing a months-long detente. Boeing, under pressure over the worldwide grounding of its 737 MAX plane, is the largest US exporter and the deal would help reduce its home country’s trade deficit with China. The potential order would be worth more than US$30b before customary discounts, depending on the mix of aircraft. The manufacturer declined to comment, while China’s Civil Aviation Administration did not immediately respond to a request for comment.<br/>
