Shandong Airlines, a subsidiary of Air China, is set to lease 10 Boeing jets in deals worth approximately US$400 million. The airline will pay a total of 2.88 billion yuan for the aircraft, which will be delivered in batches over the next two years. The leases include 10-year agreements for three Boeing 737-800 jets, 11-year leases for three more 737-800 aircraft, and 12-year leases for four Boeing 737 Max planes.
The announcement comes ahead of a planned US-China trade meeting, although the trip has been postponed due to the US-Israel conflict with Iran. China has a history of ordering Boeing aircraft as part of trade deals, with a notable agreement in 2017 to purchase 300 jets. These purchases were seen as a means to reduce the US-China trade deficit.
A significant aspect of this deal is the changing dynamics of US-China trade relations. Rising tensions and safety concerns surrounding Boeing aircraft have made procurement uncertain in recent years. This development highlights the complexities of global trade and the shifting priorities of major players.
The latest deal between Shandong Airlines and Boeing underscores the ongoing demand for American jets in China. As the global trade landscape continues to evolve, it remains to be seen how this will impact the US-China trade deficit. The postponement of the US-China trade meeting due to the US-Israel conflict with Iran adds another layer of complexity to the situation.
