China Aviation Supplies (CASC) is negotiating an order for around 10 new widebody aircraft from Boeing, despite growing signs that some domestic carriers are experiencing indigestion trying to absorb the 50 Boeing aircraft ordered last October.
The latest purchase under discussion is understood to include six 747-400 passenger and combi aircraft for China Eastern, with an option for four of the proposed increased gross weight -400Xs. The Shanghai-based carrier needs new larger capacity long range aircraft for its transpacific routes, with Airbus proposing the A340-500.
China Eastern's 747s are intended to replace five MD-11s, which the Shanghai-based carrier wants to convert into freighters for a planned start-up cargo carrier in partnership with China Ocean Shipping.
Beijing wants to conclude the deal in time for US President Bill Clinton's visit in late June. Rather than unveil any large new narrowbody purchases, CASC looks set to re-announce up to 20 orders included in last year's package, which it claims were originally options. The 26 Boeing 737-700/800s, 10 737-300/400s, five 757s, eight 777-200s and one 747-400 announced in October have already been allocated .
The Civil Aviation Administration of China, concerned at falling domestic load factors, ticket discounting and overcapacity, has reportedly ordered "local carriers" not to order any more new aircraft until the end of the year. Xinhua Airlines has already backed out of taking two 737-700s and, after first trying to sell or lease them on the international market, has placed them with Shenzhen Airlines.
Shenzhen had originally been instructed to take licence-built MD-90s from Shanghai Aviation Industrial, but has refused to accept the aircraft. China Eastern has also indicated that it wants to delay deliveries by up to four months of two or three Long Beach-built MD-90s and several A320s on order through CASC.
Source: Flight International
