Air China is again beginning to show active interest in the Boeing 777, raising the US manufacturer's hopes of finally being able to conclude a long-awaited deal with the carrier for up to 15 of the twinjets.

The Chinese flag carrier is understood to be discussing buyer-furnished items with competing vendors for the Boeing 777. With this, and signs of a marked improvement in relations between China and the USA, industry sources are increasingly confident that the stalled purchase might be allowed to go ahead.

Boeing is believed have reached a provisional agreement with Air China more than 18 months ago for ten 777s, plus five options, and five 747-400s. A succession of political and trade rows between Washington and Beijing resulted in State Planning Commission approval being shelved, however.

With production slots at Boeing rapidly filling, Air China has since been allowed to proceed with its original 747 deal, ordering five aircraft in two batches. As relations between the two countries improve, other smaller purchase and lease deals have also been given the green light (Flight International, 29 January - 4 February).

Air China is interested in a mix of 777-200s and stretched -300s, but the final proportions are not yet clear. Originally, it had wanted to take delivery of its first 777 this year, but with its slots now gone this is likely to be pushed back to late-1998 at the earliest.

Attention is also beginning to re-focus on Air China's other outstanding requirement for up to 20 new 200-seat narrowbody aircraft. The carrier is believed to have reduced its choice to the Airbus A321 and Boeing 737-800. Having taken delivery of its last 737-300 in January 1996, Air China's need for a new narrowbody is less of a priority, and no decision is expected until after the 777 order is resolved. First narrowbody deliveries are tentatively targeted for 1999.

Airbus is hoping to secure the A321 order as part of a larger package of aircraft being negotiated with China Aviation Supplies (CASC). It is also keen to sell the carrier more A340s to supplement three due for delivery this year. The consortium is hoping to secure the deal in time for French President Jacques Chirac's planned visit to China in May. The deal is intended as a follow-on to CASC's order for 30 A320s, announced during Chinese premier Li Peng's trip to France in 1996.

Source: Flight International