Boeing Buys 5 Airbus A340's In Weird Deal To Sell 20 of its 777's To China Eastern Airlines
Seattle, WA -
Boeing has announced a deal to buy five Airbus A340's from China Eastern in a deal that, pending Chinese government approval, will add 20 more 777 aircraft sales to its books.
China Eastern had said that it wanted to get rid of the A340's because they were not cost effective and needed room for newer aircraft and to seal the deal, Boeing agreed to buy the five airplanes from Chin Eastern and will presumably sell them at a later time.
The Boeing 777 is the world's largest twin-jet aircraft and is capable of very long routes (10,300 miles) being ETOPS certified for up to 330 minutes in some cases. The 777 first flew in 1994 and has received over 1,000 orders as of Mach 2012. That makes it one of the most successful aircraft in aviation history. List price is more than $220 million but carrier often get discounts with large orders.
The deal is surrounded by rumors and speculation that it is a result of the European carbon tax which forces airlines to pay a fee for excess carbon emissions they use while flying over or into Europe. The highly controversial deal has pitted Europe against most of the rest of the world with it being called a tariff and an unfair tax. Even European airlines and aircraft manufacturer Airbus has protested the tax.
As a result, China recently placed a ban on Chinese carriers from buying Airbus aircraft, which are made in France, starting a potential trade war.
While cracks are growing within the European parliament and among the country's leaders, so far the Euro-block has refused to back down from the tax but has indicated it is willing to re-examine it for modification.
The opposition has seen over 30 countries including the US, China, Russia, India, Brazil, Mexico and Canada join the Delhi Declaration which openly protests the EU Carbon Tax.
Making it even more controversial, opponents say the money raised from the tax is not even going towards environmental issues, but rather to the EU's general treasury.