Boeing has agreed to acquire five Airbus A340 planes from China Eastern Airlines in a move to secure the airline’s order for 20 Boeing 777 jets worth around $6bn.
The Chinese airline said it had planned to sell its eight year old A340-600 airplanes, worth $708m, to Boeing due to high operating costs and weak route competitiveness.
Speaking on the unusual move, a Boeing spokesman was quoted by Reuters as saying: "It is fair to say that at times we do take airplanes in trade, including occasionally non-Boeing airplanes, as part of our orders transactions."
The trade-in deal follows an agreement that will see Airbus buy back the other half of the airline’s A340 fleet in a separate deal to sell 15 A330 aircraft, which includes 12 A330-200s and three A330-300s for $2.5bn.
China Eastern Airlines will pay the amount for the new Boeing jets, which are scheduled to be delivered in stages from 2014 to 2018, through working capital, bank loans and other sources of financing.
The 777-300ER is an extended-range version of Boeing’s twin-engine, long-haul 777 airplane; it can accommodate 365 passengers while cruising up to 14,685km.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe new deal is expected to be signed against the backdrop of growing fears in Europe that Airbus orders are being blocked by China, following the disputed European Union carbon tax on aircraft emissions.
The EU carbon tax was imposed on airlines from January 2012 and carriers will begin receiving bills next year following the assessments of this year’s emissions.
According to EU, the tax will help it attain a goal of reducing 20% of carbon emissions by 2020, but many countries have opposed the move.
