NICHOLAS IONIDES SINGAPORE
Amid the global gloom following the 11 September terrorist attacks on the USA, China is standing out as a bright spot for aircraft manufacturers.
Chinese airlines says they have not been feeling the effects of the downturn, and that orders are still going ahead as planned.
For several years the government has been rejecting order requests by many of the country's carriers as a result of domestic overcapacity, but regulators believe it is time for the national fleet to return to strong growth.
Boeing received a boost on 2 October when the Chinese Government confirmed a long-awaited package deal for 25 Boeing 737-800s and five 737-700s in a contract valued by the manufacturer at $1.6 billion.
The 30 737s will be delivered between 2002 and 2005. China Eastern will be allocated four -700s, China Southern 20 -800s, Hainan Airlines three-800s and Shanghai Airlines two -800s. One 737-700 has yet to be allocated.
As China's economy is centrally planned, the government orders aircraft through China Aviation Supplies Import & Export, allocating them to the country's airlines, which make their requests through the regulatory Civil Aviation Administration of China.
Boeing says the deals have pushed the number of aircraft sold to China this year up to 40. This includes a separate earlier deal for six 737-700s for Air China, which was publicly acknowledged at the signing ceremony in Washington DC.
Orders for two Boeing 747-400 freighters for China Southern and two 757-200s for Xiamen Airlines were also publicly confirmed. Four 737-800s are thought to have been ordered for Air China earlier this year in a separate deal that will see Boeing acquire two of the carrier's 747-400s, while Hainan is due to start taking delivery of up to 10 767-300ERs next year.
Beijing has been seeking to improve ties with the international community in recent months, particularly after winning the right to host the 2008 Olympic Games.
A sizeable order for Airbus A320-family aircraft has also been under discussion and it is possible a deal will be confirmed before the end of the year.
Although it is unclear which Chinese airlines would be allocated Airbus aircraft, China Southwest may take A319s for Tibet services. China Eastern, China Northwest, China Southern, CNAC-Zhejiang Airlines and Sichuan already operate A320-family aircraft, while Air China and China Northern Airlines have eight A318s and 10 A321s on firm order respectively.
Russia received a boost for its struggling manufacturing industry in September, when China ordered five Tupolev Tu-204 freighters, which will be allocated to China Northwest and China Southwest.
Source: Airline Business
