Boeing gets major jet order from China

WASHINGTON, Oct. 2 (UPI) -- Facing a downturn in air travel following last month's terrorist attacks on the United States, Boeing formally received a timely new order Tuesday to supply 30 airliners to the People's Republic of China.

A Chinese delegation and Boeing executives met at the Department of Commerce in Washington to sign the twice-delayed $1.6 billion agreement for new Boeing 737-700s and 737-800s that will be supplied from 2002 through 2005.

"The 737 is the perfect airplane to accommodate China's fleet renewal, bringing the most modern airplanes into the country's domestic route system," said Alan Mulally, president of Boeing's commercial airliner division. "We are extremely proud to be China's preferred aviation provider."

The agreement will provide 20 of the 737-800s to China Southern Airlines; the remainder will be earmarked for China Eastern, Shanghai and Hanna Airlines. There are currently 197 Boeing 737s operating in China.

"China is modernizing its commercial fleet to improve airline efficiency and profitability," said Zhang Guobao, Vice Chairman of China's State Development Planning Commission. "Our near-term focus is fleet renewal. We believe the 737 to be one of the most suitable choices because the airlines recognize the jetliner's reliability and efficiency. In addition, the flying public has become accustomed to 737 dependability and comfort."

Tuesday's signing signaled what Boeing executives see as one of the few bright spots on the aerospace horizon as the airline industry struggles with both the short-term reduction in air travel since Sept. 11, and the growing worldwide economic slump that is expected to curb air traffic -- and plane orders -- in the coming months.

The aerospace giant announced last month that it would be eliminating 30,000 jobs nationwide in its commercial jet division amid projections of a steady decline in aircraft orders. While China's order will likely not save any of the doomed jobs, it will provide the company with some stability as it weathers the developing economic turbulence.

"Thank God we have them now," Boeing's senior vice president of sales, Larry Dickenson, recently told the Seattle Times. "If there's a bright spot on the horizon, it's China."

Tuesday's signing ceremony actually had been in the works for nearly a year, the Seattle Times noted. The signing of the agreement originally had scheduled for last March, but the collision between a Chinese fighter and a Navy EP-3E spy plane resulted in its postponement.

The order was resurrected, however the rescheduled Sept. 17 signing ceremony was again postponed due to the Sept. 11 attacks on the Pentagon and World Trade Center.

"The Chinese believe transactions are momentary," Dickenson added, "but relationships endure through all time."