Boeing Co. (BA) said China Eastern Airlines Corp. (CEA, 0670.HK,
600115.SH, K3CD.SG) agreed to buy 20 Boeing 777, as the airline
plans to expand capacity in the Asia-Pacific region and China to
meet growing demand.
Financial terms of the deal, which still requires approval from
the Chinese government, weren't disclosed. Citing people familiar
with the deal, Reuters recently reported that the order was worth
$6 billion and was being made as China Eastern was holding back on
a $3 billion order for 15 Airbus A330 planes.
China Eastern had recently canceled an order for 24 Boeing 787
Dreamliners, with the carrier swapping out for 45 smaller 737
planes. While the Dreamliner has faced years of delays, the
cancellation owed much to China Eastern's refocusing its expansion
on domestic routes rather than long-haul international flights.
Boeing has benefited from a global expansion of passenger air
travel and a mountain of orders for its best-selling 737 jets. But,
the aerospace company has faced challenges from soft U.S. defense
spending.
Earlier this week, the company said its first-quarter earnings
surged, driven by a continued rebound in its commercial airplane
business.
Shares were up 1 cent at $77. The stock is up 5% so far this
year.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108;
ben.rubin@dowjones.com