Converts Order To 45 737s, Shifts $2.5 Billion To Airbus For 15 A330s

Boeing executives likely knew that the lengthy delays in getting the Dreamliner up, flying, and certified would cost it some businesses, and that rang true Monday as China Eastern converted $3.3 billion in orders for 24 of the new airplanes to 45 737s. The airline also said it plans to buy 15 Airbus A330s over the next four years at a price tag of $2.5 billion.

Analyst Alex Hamilton of EarlyBirdCapital told Reuters that the airline was using the delivery delays as an excuse, and that Airbus simply made an offer that was too attractive to refuse. But while Hamilton said it was the first time Boeing had seen this kind of cancellation, he thinks the company expected it was coming.

Boeing spokesperson Marc Birtel said the airline made its decision based on "operational considerations." He said that it does not signal a fundamental shift in the relationship between Boeing and the Chinese government.

Boeing still has a strong 800-plus unit order book for the 787. The airplane is about three years behind schedule, which the planemaker attributes mostly to issues with its global supply chain.

FMI: www.boeing.com