Boeing wins $4bn Dreamliner deal for China Eastern


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Boeing has won a contract from China Eastern Airlines for 15 787-9 Dreamliner planes worth nearly US$4 billion.

China Eastern plans to use the long-haul planes for travelling between China, North America and Europe, Boeing said.

"We are very happy to introduce the new 787 Dreamliners into our long-haul fleet," said the China Eastern Airlines chairman Liu Shaoyong.

“The addition of these next-generation, fuel-efficient airplanes will play a key role in supporting China Eastern’s strategy for international expansion, and enable us to realise profits in point-to-point routes across the Pacific Ocean, and between China and Europe.”

The aircraft will be mainly used on flights from Shanghai to Los Angeles, New York, San Francisco, Toronto and Chicago.

China Eastern is one of China’s top three airlines, operating 560 aircraft and carrying about 100 million passengers annually.

The order comes one day after Boeing reported an 8.8 per cent drop in first quarter earnings to $1.2bn, partly due to slower aircraft deliveries into a slowing global economy.

Separately, China’s largest budget carrier Spring Airlines today posted a 44 per cent jump in first-quarter net profit to a record 366.7 million yuan (Dh207.9m), lifted by robust travel demand.

Airlines in China are benefiting from a surge in travel by the Chinese, and lower fuel prices. This month, the Spring Airlines chairman Wang Zhenghua told reporters the company seeks to double the size of its fleet to 100 aircraft by 2018.

In a stock exchange securities filing on Thursday, Spring Airlines also said 2015 net profit rose 50.2 per cent to 1.33bn yuan.

Spring Airlines has been profitable since it was launched in 2005 by Mr Wang. Last year, it became the first budget airline to list shares on the Shanghai Stock Exchange.

But a 24 per cent fall in its shares this year could lead the company to consider investing in businesses that can provide bigger returns,Mr Wang said this month.

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