China buys 737s

China has agreed to buy 30 Boeing 737 airliners to help meet the country’s growing demand for air travel.
The planes will go to five different airlines and are due for delivery in 2005 and 2006.

China has also signed a deal with General Electric to supply engines for the country’s regional jet programme.

US officials said the deals could help to narrow the large trade gap between the US and China which has been a source of tension in recent months.

The airlines buying the new planes are Air China, Shenzhen Airlines, Xiamen Airlines, Hainan Airlines and Shandong Airlines.

The deals are worth up to $1.7bn in planes and engines during 2005 and 2006.

Rising demand

“The Chinese aviation industry is the fastest growing market in the world,” said Zhang Guobao, vice minister of China’s development and reform commission,

“Adding these 737 airplanes to our current fleet of 672 will help Chinese airlines meet their rapidly growing networks and accommodate rising demand from our passengers.”

Speaking at the signing ceremony, US Commerce Secretary Don Evans said the deal was a promising sign that business relations between the two countries could expand.

“These multibillion-dollar contracts are a big victory for Boeing and GE,” he said.

“They will generate corporate revenue. They will support high tech manufacturers and generate thousands of jobs.”

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