Boeing Is Way Behind Airbus in Race for China’s Next Big Order
(Bloomberg) -- The long-awaited trade agreement between the U.S. and China may pave the way for Boe-ing Co. to resume sales to the world’s second-largest aviation market, but the American giant has much catching up to do against European archrival Airbus SA.
China Aviation Supplies Holding Co., which buys planes on behalf of the nation’s airlines, has been in talks with Airbus since 2019 about purchasing jets for the country’s next five-year economic plan that begins in 2021, people familiar with the matter said, asking not to be named discussing a private matter. Those talks began early last year, one of the people said. China’s top economic planner, which needs to clear negotia-tions of this magnitude, hasn’t even authorized the state procurement firm to begin talks with Boeing yet as trade tensions held back discussions, the person said.
This means the Chicago-based aircraft maker is at least months behind Airbus in securing orders from Chi-na, which Boeing estimates will need more than 8,000 planes in the next two decades. Boeing is still reel-ing from the grounding of its best-selling 737 Max planes, which resulted in the company delivering fewer than half of the planes that Airbus did last year, the biggest defeat in the industry’s 45-year duopoly.
Chief Executive Officer Dave Calhoun on Wednesday voiced optimism that Boeing will continue to have a valued relationship with China. A representative at the company declined to comment beyond what the new CEO said. The National Development and Reform Commission, which is China’s main economic plan-ner, and China Aviation Supplies didn’t immediately respond to requests for comment. Airbus declined to comment.
Things may be looking up for Boeing. Aircraft were among the $200 billion in American purchases that China pledged to make as part of a phase-one accord, though details weren’t disclosed. Also, it’s unlikely that China would shun Boeing entirely because the country has historically split its orders evenly between the two manufacturers, Airbus doesn’t have the capacity to meet all of China’s needs and such a drastic move would require thousands of pilots to be retrained.
Trade tensions have hindered Boeing’s ability to capitalize on surging demand from a country that’s ex-pected to become the world’s largest aviation market in the coming years. China will need to spend $2.9 trillion on new aircraft and ground services over the next two decades, Boeing predicted in September.
The talks with Airbus are separate from an already-announced commitment from China to buy $35 billion worth of the Toulouse-based company’s jets, according to the people.
In China, which led the grounding of the 737 Max, airplane purchases need to be cleared by regulators be-fore they are handed off to China Aviation Supplies.
譯文來源：三泰虎 http://www.hadlq.tw/49195.html 譯者：Joyceliu
Travelingman2 days ago
The same thing is happening on militay ships being built today. They take a boat that the oil industry uses to supply oil companies that is built for $15 to $20 MILLIONS DOLLARS and sell it to the gov-ernment for $220 MILLION each ..... and then they start cutting corner and do all they can to make the boat cheaper and cheaper to build.
The ships used by the oil industry are used every day, 24 / 7 for years and years with very little down time.
Ziggy2 days ago
Why would PRC wish to buy planes that drop from the sky? I am American but Boeing did that to itself even with all the help it gets from taxpeyer
Adikia2 days ago
Clearly the Airbus aircraft are a far safer option at present. No surprise here.
DREAMER2 days ago
What's going on with MADE IN AMERICA. Just like in automobiles, we never compete with European cars. Wake up no more, we need to overhaul our engineering and technical schools to emphasize in QUALITY AND TECHNOLOGY.
John2 days ago
Boeing sold their soul with the MAX and now they are paying the price for their utter contempt toward safe-ty...I wouldn't buy the Max at this point
juan2 days ago
China isn't going to buy any of the doomed 737 max. Maybe some of the wide body planes. European airlines also wont risk reputation buying the max in despite of the more than doubtful approval.
wagging tongue2 days ago
It's hard to make long term commitments when the US can break any treaties without cause. Safer to buy Airbus from EU.
Sad to see a great plane maker go down in smoke because they knew they were making an unsafe airplane. Bad flight systems, bad engine placement, bad wiring, poor design and ignoring the engineers warnings and then lying to the FAA. And the murder of hundreds of people. In all a death sentence to any manufacturer.
Derek2 days ago
Boeing had two planes fall from the sky. American Made will become a laughing stock of the world in a dec-ades time.
Anthony2 days ago
Boeing did that to itself
Isn't it strange that the CEO left with a 60 million dollar payout? There is something seriously wrong with the way our country is being run. Fix it or this country will go downhill.
eric dante2 days ago
Trump does not want Huawei but he wants china to buy Boeing....nice, very american..nice
Maki2 days ago
If my life is on the line I definitely go for Airbus also.
Boeing is so bloated a snail moves faster the Ceo should have been fired long ago and the 737 max should have been scrapped in early December .
alexx2 days ago
“ Boeing Is Way Behind Airbus in Race for China’s Next Big Order”
This is what can happen when a high tech company like Boeing have to many bean counters in the top leadership.
R2 days ago
No one is buying Boeing these days...
Unbelievable the length of cost-cutting Boeing went to on the 737 MAX.
令人難以置信的是，波音居然這么夸張地削減了737 MAX 的成本。
China has already decided to go Airbus because AB built an entire assembly line in China and Boeing has not.
Teddy2 days ago
Why is no one in prison yet do the Boeing scandal? People up high knew what was going on, chose profit over safety.
They risked destroying a flagship American company responsuble for many high paying jobs.
They should be in prison
Boeing just needs to go back to designing planes that stay in the air.
Boeing is the Chrysler of the late 1970's
Boeing suffering from self inflicted shot. Damage is beyond repair.
“If I have to travel using Boeing, I’m not going”.
This is what's going to happen. The 737 MAX will get approved to fly again. Then it will crash again and finally scrapped. Then Boeing and the industry and suppliers will be in financial trouble and we the taxpayers will have to foot the bill.
Even the Chinese have enough sense to avoid the Boeing death-traps
Yes, but Boeing cost cutting is exceeding goals!
Boeing is done..this big flying coffin will not sell. China is not gonna take any chances with inferior products.
Chef Of The Future
NOT just China. Everywhere else that wants to buy a plane that will actually stay in the air.
china is building its own aircraft
John2 days ago
Why would anyone trust Boeing after the Max debacle?
strangely everyone thinks about the 737 max issues, but its more then just that. Its the willingness of the Chi-nese market to accept American goods with the trade war issues. As well its the inability of Boeing to bribe. Under US law, Boeing can not offer "incentives" to the right people to get contracts.
Go with the best and Boeing clearly is not the best.