Chinese Airlines Sign $5B Boeing Deal

SHANGHAI, China — Four Chinese airline companies have agreed to buy 42 Boeing 787 jets for a total of $5.04 billion, the official Xinhua News Agency reported today.

China’s flag carrier Air China Ltd. and China Eastern Airlines Corp. will buy 15 planes each, Shanghai Airlines Co. will buy nine planes, and Xiamen Airline Co. will buy three planes, the report said. The purchase comes ahead of an expected visit by Chinese President Hu Jintao to the United States in September and is a coup for Chicago-based Boeing over European archrival Airbus SAS.

In January, six Chinese airlines signed an agreement with Boeing to order 60 of its new fuel-efficient 787 Dreamliners for $7.2 billion. It was not clear why the latest purchase contract signed did not include Hainan Airlines Co. and China Southern Airlines Co., who were part of the earlier agreement.

Chicago-based Boeing has said the 787s will be priced at about $120 million each, though airlines usually negotiate discounts for large orders. The 787 Dreamliner, to go into service in 2008, competes with the A350 being developed by Airbus.