Air China subsidiary to lease 10 Boeing jets in deals worth about US$400 million
The 10-jet lease signals continued demand for U.S. aircraft ahead of high-stakes U.S.-China trade talks.
Shandong Airlines, a subsidiary of China's flagship carrier Air China, has signed agreements to lease 10 Boeing aircraft in a deal valued at approximately $405 million (2.88 billion yuan). According to a filing with the Shanghai Stock Exchange, the lease includes three Boeing 737-800 jets on 10-year contracts, three more 737-800s on 11-year leases, and four Boeing 737 MAX planes on 12-year terms. The aircraft will be delivered in batches over the next two years, signaling a continued refresh of China's domestic airline fleets despite global trade tensions.
The timing of the announcement is politically significant, coming just weeks ahead of a now-postponed visit by U.S. President Donald Trump to China for trade discussions with President Xi Jinping. China has historically used large aircraft orders as a strategic tool to address the U.S. trade deficit, most notably with a 300-jet purchase agreement during Trump's 2017 state visit. However, recent years have seen increased uncertainty in such procurements due to escalating U.S.-China trade disputes and safety concerns surrounding Boeing models, particularly the 737 MAX following its global grounding.
- Shandong Airlines, an Air China subsidiary, will lease 10 Boeing jets (737-800 & 737 MAX) for $405M.
- Deliveries are scheduled over two years, with lease terms ranging from 10 to 12 years.
- The deal arrives ahead of postponed U.S.-China trade talks, continuing a pattern of using jet orders as a diplomatic trade tool.
Why It Matters
The deal is a significant barometer of U.S.-China trade relations and a concrete financial commitment amid ongoing geopolitical and economic tensions.