Saturday, May 7, 2016

The China Eastern 787 Sale Is A Sea Change For Boeing

China Eastern just placed an order with Boeing for fifteen 787-9's. To the casual observer they will mention Airbus is besting Boeing with a twenty count A350-900 order during the China Eastern announcement from its buying spree for the year.

Image result for nose to nose A350 787

Youtube Photo credit
However it is better to examine a little deeper into the story as Motley Fool has examined with the headline:

The not so fast my friend approach and sale with the Airbus’ 20 wide bodies, suggests Boeing has breached into a market where it has not had much success.

Motley Fool on the 787 Sale:

"Given that the China Eastern Airlines order was not mentioned in last week's order update, and that since it was announced on April 28, it just missed the cutoff for reporting as a firm order in that update (which covered orders placed up through April 27), it seems safe to say I think we have found our buyer: China Eastern was the company that bought the 787's this week."

It is more import to note that China Eastern is an Airbus Company and would only order twenty A350-900 for its fleet consistency. 

Motley Fool Quote:

"China Eastern currently operates a mostly Airbus (NASDAQOTH:EADSY) fleet."

"Weighed against China Eastern's 293 Airbus aircraft of all shapes and sizes, that makes Boeing a relative bit player at the carrier -- but now its presence is growing.
For a company that places so much faith in the potential of the Chinese market, that's a good thing."
Boeing did not lose an Airbus battle going with a score of 20 A350's to 15 B787 wide bodies. It won a significant beach head in the Chinese aviation market place. Boeing keeps chipping away just as Airbus did in the 1990's.