Connect with us

Business

Trump-backed Boeing China deal finalized, first order of 200 aircraft revealed

Published

on

Boeing, the aerospace giant, revealed on Friday that China had agreed to purchase 200 airplanes, as promised previously by US President Donald Trump on his visit to Beijing.“We had a very successful trip to China and achieved our major goal of reopening the China market to orders for Boeing aircraft,” the business, whose CEO Kelly Ortberg was part of the US delegation to China, said in a statement.This includes an initial commitment for 200 aircraft and we expect further commitments to come following this initial tranche,” Boeing said, thanking the Trump administration “for making this milestone happen.”“We now look forward to meeting China’s aircraft demand on a continuing basis,” it added.

China’s most recent Boeing order was placed in 2017, when Trump visited Beijing at the beginning of his first term in the White House. During that period, it ordered 300 single-aisle and wide-body aircrafts — a massive transaction for $37 billion.

On Thursday, Trump had said of the new Boeing commitment, telling Fox News anchor Sean Hannity during an interview: “I think it was a commitment.””That’s a lot of jobs,” the president said.

Speaking to reporters traveling with him on Air Force One was when he returned from China, when Trump said the agreement came with “a promise of 750 planes, which will be by far the largest order ever, if they do a good job with the 200.”

For some months, US media have speculated that Beijing was preparing to place a big Boeing order comprising 500 single-aisle 737 MAXs and roughly 100 bigger 787 Dreamliners and 777s.”He pledged 200 Boeings, big ones, 777s, and 737s and lots of big, big ones, big, beautiful Boeing planes,” Trump claimed in the interview with Fox News aired Friday evening.

For China, such a large order would lock in capacity to continue expanding its aviation sector while output of its home-grown COMAC C919 narrow-body misses ambitious expectations.

It would also help Boeing lessen its deficit with rival Airbus, which has forged forward in China in recent years.

An estimate from aviation intelligence and advisory group IBA valued the 200-aircraft deal at around $17 billion to $19 billion assuming an 80% mix of MAX jets.”This number could rise to $25 billion, however, if a larger proportion (around 40%) of the total order is announced for the widebody aircraft,” said Samuel Kenekueyero of IBA.

The accord would be a much-needed success for Trump, whose tough tariffs and other trade policies so far have failed to make much of a dent in the massive US trade deficit.

If it materialises, an order for more than 500 jets would be the biggest in aviation history, exceeding IndiGo’s contract for 500 Airbus narrowbody aircraft. However, China’s order would likely be shared amongst its three major state-run airlines.

Order size under forecasts
U.S. planemaker shares fell about 4% on Thursday after Trump claimed Fox News Channel China had agreed to buy 200 jets, significantly below analysts’ forecasts. Friday they were down around 2.6%, and GE Aerospace shares sank 2%.

Initially, Boeing was in negotiations for at least 500 narrowbody jets linked to the Beijing summit and dozens of widebody jets, with potentially as many as 200 to follow at a later date, industry sources said.

Trump said Xi will make a reciprocal visit to Washington in September, perhaps making it the centerpiece of the next round of possible jet orders.

However, Li Hanming, an independent specialist on China’s aviation business, said concerns over after-sales service had affected purchase decisions. “The reason China isn’t buying is really simple. Nobody wants to buy something without assured after sales maintenance and assistance. Last May, the U.S. was still threatening to restrict exports of parts. If they apply embargoes on parts like that, who would still dare buy Boeing?”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Govt slashes kerosene price, revises fuel duty on petrol, diesel

Published

on

By

The federal government has cut the price of kerosene oil by Rs7.23 per litre and also revised the petroleum charge on petrol and diesel, according to official notifications.

According to the revised rates announced by the Oil and Gas Regulatory Authority, the new price of kerosene oil has been determined at Rs311.73 per litre against the previous cost of Rs318.96 per litre.

The fuel price was dropped by Rs9.24 per litre to Rs108.17 a litre from Rs117.41, Petroleum Ministry sources said.

In contrast, the duty on high speed diesel was raised by Rs9.40 a litre to Rs52 a litre from Rs42.60.

The Petroleum Division had announced a Rs5 per litre drop in the pricing of both fuel and high-speed diesel.

After the change, the new petrol price is Rs409.78 per litre and high-speed diesel Rs409.58 per litre.

The revised fuel rates have come into force across the country from midnight, according to a notification issued by the Petroleum Division.

Continue Reading

Business

KP CM, Governor agree to ease lockdown restrictions

Published

on

By

Governor Khyber Pakhtunkhwa Faisal Karim Kundi and Chief Minister Sohail Afridi Friday agreed to lift lockdown restrictions in the province to assist people and to promote economic activity.

Governor Kundi said in a telephonic discussion that the lockdown limits should be lifted on the pattern of Punjab and shops, marketplaces, shopping malls and eateries should be exempted from limitations.

The chief minister agreed to the recommendations and the two leaders discussed how to balance popular convenience with economic stability.

Governor Kundi said the flexibility in business timings for stores, markets and shopping malls would help in reducing the financial losses being sustained by the trader community.

He said the government should continue to prioritize the relief of the people, adding that the resumption of business activity will help in stabilizing the economy in the province.

The Governor noted that the administration was well aware of the problems being encountered by traders and guaranteed that steps would be taken to address their issues.

The two leaders also spoke on the general situation in the province and public welfare issues. They decided to formulate a coordinated plan for the promotion of economic activity and ensuring maximum facilitation to the public.

Continue Reading

Business

SBP initiates ‘go cashless’ drive for Eid-ul-Adha 2026

Published

on

By

Eid-ul-Adha 2026: State Bank of Pakistan launches statewide “Go Cashless” campaign to promote safe, convenient digital transactions in livestock markets across the country

The project, launched under the Digital Pakistan vision, intends to cut down on cash transactions and increase the usage of digital payments during the busy trading season of Eid.

The central bank said livestock markets see a huge economic and commercial activity every year during Eid-ul-Adha and most transactions are customarily made in cash. SBP has been encouraging digital financial inclusion in these seasonal markets in recent years, in view of the high volume of transactions.

“Building on the success of previous campaigns, the initiative has been significantly expanded in 2026,” the central bank said. Last year 54 cattle markets took part, this year 96.

Under the “Go Cashless” program, 22 partner banks will set up dedicated camps and kiosks at selected livestock markets to aid buyers and sellers. The banks would also help the livestock sellers, transporters and service providers to open accounts and use QR code based payment methods.

The SBP has temporarily lowered transaction and account balance limits for the period from May 14 to June 5, 2026 to facilitate higher transaction activity during Eid.

The central bank also said that mobile banking vans, ATMs and cash deposit machines will be placed in and near cattle markets to ensure access to financial services wherever feasible.

The SBP suggested the general public to adopt mobile banking applications and Raast digital payment system to prevent dangers of carrying cash and help promote transparency and security in financial transactions.

Continue Reading

Trending