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            january 29, 2020

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Boeing expects to win 200 orders from China


America's biggest plane maker Boeing expects to win 200 orders for the company's 737 MAX aircraft in China this year, reports Bloomberg.
"We're out talking to every single airline in China about the 737 MAX," said Jim Albaugh, the company's commercial aircraft chief, adding that he also plans to sell "quite a number" of 747-8s.
Boeing must compete for orders with the Commercial Aircraft Corporation of China's (Comac) C919 aircraft, which has won 225 orders. Single-aisle planes like the C919 and 737 MAX are expected to account for 71 per cent of the 5,000 new planes flown by Chinese airlines by 2030, according to Boeing.
Mr Albaugh said that Comac will be "a tough competitor" in coming years, but despite this, Boeing plans to set up a jointly-funded research centre with the Chinese company in Beijing to develop fuel-efficient technologies.
Boeing forecasts the new 737 MAX to play a big role in taking half of a US$2 trillion market in the next 20 years and fend off a challenge from Toulouse-based Airbus. Boeing has been helped in this by Beijing's refusal to pay Europe's new carbon tax on aircraft emissions, and its recent instructions to domestic carriers to minimise Airbus business.
"Comac is going to sell into their domestic market and they'll probably also sell some of their planes around the world," he said. "In the years to come, they're going to be a tough competitor."
The C919 and 737 MAX compete in the single-aisle segment that dominates global airline fleets. The market will probably account for 71 per cent of the 5,000 new planes that Chinese carriers will order through 2030, according to forecasts from Chicago-based Boeing.
In the wide-body segment, Boeing anticipates "several dozen" 777 orders in China this year, and deals for both 747-8 passenger and freighter jumbo jets, Mr Albaugh said. Hainan Airlines, backed by the government of Hainan province, may swap 787 orders for 747-8s, said Chen Feng, chairman of its Hainan Airlines, parent company, Grand China Air.
China Eastern Airlines, the country's second-biggest carrier by passengers, swapped 24 orders for 787 Dreamliners last year in favour of smaller 737s because of delivery delays and a slowdown in demand for long-haul international travel.

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