Boeing wins $37-billion order for 300 aircraft from China

China Aviation Supplies Holding Co. agreed to buy 300 aircraft worth about $37 billion from Boeing Co. as the nation’s airlines ramp up capacity to meet rising demand.

The purchase includes 260 narrowbody planes and 40 wide-body aircraft, the Chicago-based planemaker said on its website after US President Donald Trump met Chinese President Xi Jinping in Beijing Thursday. Prices are before discounts that are customary in the industry for large orders. The company didn’t specify how many are new orders.

Chinese airlines have been on a plane-buying spree amid a projection for the country to overtake the US as the largest air-travel market possibly in as soon as in five years. The state has previously placed large orders through a centralized buyer before dividing them up among its airlines and leasing companies, including a $22-billion deal with China Aviation Supplies that was announced in July.

During a visit by Xi to Berlin in July, Airbus SE said it won a $22-billion order to supply 140 planes to China, including 40 wide-body A350s and 100 of its narrowbody A320-series jets. China Aviation Supplies would allocate the planes to individual airline operators over the next five to six years, Airbus said at the time. Talks were also underway for the planemaker to sell more A380 superjumbo jets to China.

In September 2015, Boeing landed $38 billion in plane orders and commitments from Chinese carriers and lessors when Xi made his first state visit to the US Under the “general terms agreement” announced at the time, there were orders and commitments for 190 single-aisle 737s and 50 wide-body jetliners, without customers being identified. Lessors ICBC Financial Leasing Co. and CDB Leasing Co. took another 60 737s. It was unclear how many were orders that had already been placed and marked as “unidentified” in Boeing’s order book.

Boeing in September raised its 20year forecast for aircraft demand in China as the nation’s growth and an expanding middle class boost air travel.