Thursday, July 9, 2015

China Eastern Goes In For 50 737-800's

Boeing slipped another order by when everyone was thinking wide body and seats. The 737-800 is the choice. It signals a pause with COMAC confidence as China's favorite own home grown single aisle framer, as it falters at the development blocks. Adding the fifty to last year’s 80 single aisle also confirmed, it brings China Eastern's organization with 130 Boeing single aisle ordered in two years. It can't wait for home cooking to age. This also signals a long term development plan for China Eastern in the region. It is building its business plan on Boeing aircraft at this time suggesting a long term investment of major proportion with Boeing indicates COMAC is further away from its intended objective than China Eastern's current growth allows.

The Puget Sound Business Journal reported, "The Commercial Aircraft Corporation of China, also called COMAC, has delayed the first flight of its C919 — a 737 rival — until sometime in 2016, Reuters reported Thursday."  

Even though it was just announced regarding COMAC’s plight of its C919, it seems Boeing knew this for quite some time, and was waiting for the other COMAC shoe to drop. It did before Thursday having Boeing announce this order for 50, 737-800 NG's, with China Eastern’s organization.  This could be a bridge order for Boeing’s Max Program, as it gains another couple of months’ worth of production with NG’s while expanding its NG remaining backlog. However, both the Max and NG will build side by side in Renton, Wa. Eliminating any production gaps for single aisle.