00:00So on the face of it, Paul, it looks like a really good deal for Boeing, given the fact that
00:04it's a 200 plane order.
00:06At the same time, the expectations were much higher for this order from China.
00:12And so the expectation was that they would order 500 737 MAX jets, as well as a large number of
00:20wide body jets.
00:21And unfortunately, the details still aren't clear on what the order comprises, what the aircraft types are, what the timing
00:30of it.
00:30And both Boeing and China have not really talked about what the order entails.
00:35And so the market is a little underwhelmed by the order, given the fact that the possibility was much larger.
00:43So just give us a little history here about for Boeing, how big is the China market for them?
00:48And how has that market evolved over the last year or two?
00:52So for Boeing, China is a really important market.
00:55China is the world's second largest aviation market.
00:58And given the fact that COMAC, which is the Chinese rival to both Airbus and Boeing, isn't really producing airplanes
01:05at such a large scale.
01:06So for Boeing, this is an important market and a market that hasn't really seen any order momentum in the
01:12last almost a decade since when Trump was last in China.
01:16So for Boeing, this was the moment that they would get their next big break from China.
01:22Unfortunately, that hasn't happened.
01:23I mean, Airbus, in that meantime, has secured over 700 plane orders.
01:28And so for Boeing, they're sort of really playing at a much smaller level in terms of the overall market
01:35in China.
01:35But given, as I understand it, the China aviation market continues to be in serious growth mode, can Airbus fulfill
01:45that growth, support that growth?
01:47Or does China at some point need Boeing?
01:50China definitely needs Boeing.
01:51I mean, the Chinese airlines that are looking to secure their next generation of aircraft or replace older aircraft with
01:58more fuel efficient ones will definitely need to order Boeing planes.
02:02And so it is something that the Chinese airlines have expressed a need for.
02:07And it is in Boeing's interest to sort of supply those aircraft.
02:11So especially at a time when jet fuel prices are rising, like fuel efficient aircraft are really valuable.
02:17And so for the 737 MAX, this is an important market both for the Chinese carriers as well as for
02:23Boeing.
02:23So let's just say it's even at this lower than expected number of 200 aircraft.
02:29That would still be the would that be the first real order from China in almost a decade?
02:33It will be.
02:34It will be the first major order by China in over in almost a decade if this order materializes, even
02:40if it's just for 200 planes.
02:42And then Trump, on his way back, talked about the possibility of up to 750 planes.
02:48And so, again, specifics aren't clear and it's not really clear what the order entails, because Trump said that it
02:56depends on whether Boeing is able to fulfill the 200 plane order and then they would order another 700 up
03:02to six, 750 aircraft.
03:03So details are sort of murky at the moment, but it it could be a sign that there may be
03:10a thought towards ordering those Boeing planes from China.
03:14Before, I mean, I guess without the help of the executive branch, whoever that may be in office, what can
03:21Boeing?
03:22It looks like Boeing doesn't have much influence or ability to shape the conversation with the Chinese, because, again, as
03:28you mentioned, they have gone almost 10 years without a sale.
03:31Yes. So China, especially for its state-owned airlines, tends to order planes in bulk.
03:37And so whether that's from Airbus, whether that's from Boeing.
03:40And so those big orders from the Chinese carriers depend on government to government relations.
03:45And Boeing has featured prominently in most of President Donald Trump's negotiations around the world.
03:53I mean, remember in Qatar, where there was that massive order, the biggest order by value for Boeing planes.
03:59And again, like Boeing planes have featured prominently in trade announcements, trade deals.
04:06And for for China, getting those Boeing planes is sort of valuable and they need to get it done.
04:13So we do expect them to buy it.
04:15But timing, again, remains unclear.
04:17So we do expect them to get it done.
04:18So we do expect them to get it done.
04:18So we do expect them to get it done.
04:18Okay.
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