China Eastern cancels Dreamliner order, opts for Airbus 330s
20 Oct 2011
In a major blow for Boeing, China Eastern Airlines has cancelled an order for 24 Boeing 787 Dreamliners and ordered 15 Airbus A330s. The new Airbus order comprises 12 A330-200s and three A330-300s.
In a Hong Kong regulatory filing, Eastern said the new orders will facilitate its international expansion.
According to the Shanghai-based China Eastern, the Airbus order is valued at $2.5 billion at list prices. Deliveries are scheduled between 2013 and 2015.
Though cancelling the Dreamliner order the carrier has substituted it with an order for 45 B737s. It cited delivery delays and a weakening economy as the reasons for cancelling the Dreamliner order.
Industry observers find the Dreamliner order cancellation to be a significant development as international carriers typically order more A330s but have, so far, held on to their 787 orders.
Reacting to the cancellation, Boeing Co said the order book for the futuristic aircraft remained firm and demand for the fuel-efficient plane was likely to pick up.
