SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co (BA.N) narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kg and 45,000 kg, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this leaves a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the “manufacturer’s empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative “manufacturer” scale is used.

“I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator,” said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. “A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations,” Hatcher added.

Boeing said in a statement that while the United States and China have both outlined positions that could harm the global aerospace industry, nothing drastic has happened yet.

“We will continue in our own efforts to proactively engage both governments and build on the recent assurances by U.S. and Chinese leaders that productive talks are ongoing,” it said.

Chinese airlines have been on a buying spree from Boeing and rival Airbus (AIR.PA) as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion centre in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines (600029.SS), Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp (600115.SS) Chief Executive Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp (GD.N), also falls into the weight range targeted for tariffs.</s>SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing (BA.N) narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kilograms and 45,000 kilograms, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this leaves a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the “manufacturer’s empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative “manufacturer” scale is used.

“I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator,” said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. “A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations,” Hatcher added.

In a statement, Boeing said the tariffs “are still in the proposal stage, so we are assessing the situation.”

Chinese airlines have been on a buying spree from Boeing and rival Airbus (AIR.PA) as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion center in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines (600029.SS), Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp (600115.SS) CEO Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp (GD.N), also falls into the weight range targeted for tariffs.</s>SINGAPORE/SHANGHAI April 4 (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co narrowbody models, according to documents from China's Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an "empty weight" of between 15,000 kg and 45,000 kg, or 15 to 45 tonnes.

Depending on how "empty weight" is defined, this leaves a question mark over the fate of Boeing's new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of "empty weight" are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the "manufacturer's empty weight," or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher "operating empty weight," which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline's specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the "operating empty weight" (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The "manufacturer's empty weight" (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative "manufacturer" scale is used.

"I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator," said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. "A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations," Hatcher added.

Boeing said in a statement that while the United States and China have both outlined positions that could harm the global aerospace industry, nothing drastic has happened yet.

"We will continue in our own efforts to proactively engage both governments and build on the recent assurances by U.S. and Chinese leaders that productive talks are ongoing," it said.

Chinese airlines have been on a buying spree from Boeing and rival Airbus as air travel grows.

Boeing and China's Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion centre in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines, Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline's plane buying plans could shift away from Boeing, China Eastern Airlines Corp Chief Executive Ma Xulun said on Wednesday "it's too early to say, we will keep an eye on the situation of the China-U.S. trade war."

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp, also falls into the weight range targeted for tariffs.

Gulfstream declined to comment. (Reporting by Jamie Freed in SINGAPORE and Brenda Goh in SHANGHAI; additional reporting by Tim Hepher in PARIS, Alwyn Scott in NEW YORK; Writing by Jamie Freed and Tim Hepher; Editing by Mark Potter, Susan Fenton and Tom Brown)</s>FILE PHOTO: Boeing celebrates the 10,000th 737 to come off the production line in Renton Thomson Reuters By Jamie Freed and Brenda Goh

SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co narrowbody models, according to documents from China's Ministry of Commerce and the U.S. manufacturer.

But it was not immediately clear how far they would affect Boeing's upgraded 737 MAX family, a key source of future Boeing profits, because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent in early trading after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an "empty weight" of between 15,000 kilograms and 45,000 kilograms, or 15 to 45 tonnes.

Depending on how "empty weight" is defined, this places a question mark over the fate of Boeing's new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking it equally with agricultural products like soybeans also targeted for tariffs as the biggest category of goods, according U.S. trade data.

Several definitions of "empty weight" are used in the aircraft industry and the ministry document did not contain any footnotes or further explanation.

Industry experts said the rules most likely refer to the "manufacturers' empty weight," or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher "operating empty weight," which includes crew and some fluids and equipment, but not fuel.

Yet even this number can vary according to an airline's specific requirements, so it is seen as a guideline only.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the "operating empty weight" of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The "manufacturer's empty weight" would typically be about 1 to 1.5 tonnes lower than this, a plane appraisal expert said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kilograms, according to a Boeing airport document published in August 2017.

Depending on how the rules are applied, this leaves it on the edge between the tariff zone and escaping the trade spat. But the larger 737 MAX 9 and MAX 10 could both be spared.

A Beijing spokesman for Boeing declined to comment when asked about the impact of the tariffs.

Chinese airlines have been on a buying spree from Boeing and rival Airbus SE as air travel grows.

Boeing and China's Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion center in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines <600029.SS>, Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

It remains unclear whether the trade dispute between the U.S. and China could affect future jet purchases.

Asked if the airline's plane buying plans could shift away from Boeing, China Eastern Airlines Corp <600115.SS> CEO Ma Xulun said on Wednesday "it's too early to say, we will keep an eye on the situation of the China-U.S. trade war."

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp , also appears within the weight range targeted by the tariffs.

Gulfstream did not respond immediately to a request for comment.</s>SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But it was not immediately clear how far they would affect Boeing’s upgraded 737 MAX family, a key source of future Boeing profits, because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent in early trading after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kilograms and 45,000 kilograms, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this places a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking it equally with agricultural products like soybeans also targeted for tariffs as the biggest category of goods, according U.S. trade data.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document did not contain any footnotes or further explanation.

Industry experts said the rules most likely refer to the “manufacturers’ empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes crew and some fluids and equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline only.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” would typically be about 1 to 1.5 tonnes lower than this, a plane appraisal expert said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kilograms, according to a Boeing airport document published in August 2017.

Depending on how the rules are applied, this leaves it on the edge between the tariff zone and escaping the trade spat. But the larger 737 MAX 9 and MAX 10 could both be spared.

A Beijing spokesman for Boeing declined to comment when asked about the impact of the tariffs.

Chinese airlines have been on a buying spree from Boeing and rival Airbus SE as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion centre in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines, Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

It remains unclear whether the trade dispute between the U.S. and China could affect future jet purchases.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp CEO Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp, also appears within the weight range targeted by the tariffs.

Gulfstream did not respond immediately to a request for comment.</s>Every month, AeroAnalysis covers the orders and deliveries for Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) (OTCPK:EADSF). Now, there's a lot more than just orders and deliveries. Some subjects are worthy of more detailed analysis and some are not. The subjects that are not are not necessarily unimportant. Therefore, AeroAnalysis has been running a monthly series that bundles some of the most interesting news items that do not justify a separate article or deserve to be mentioned again. You can read the February report here. In this article, some news items from March will be highlighted.

In March, Boeing's shares lost 6.2% compared to a 1.5% gain a month earlier. Contrary to many of the previous months, Boeing shares underperformed compared to the broader market.

There are a few reasons for that. A pretty straightforward one is that sentiment has changed on global markets. Boeing has significantly outperformed that market for well over a year and so it should not come as surprise that during corrections or sentiment turns Boeing’s share prices might drop a bit more than what we are seeing on the broader market. Are we concerned about this? No, because overall, Boeing has shown to be a very nice investment, adding 10% to its value compared to -4% for the Dow Jones (NYSEARCA:DIA) this year alone and the commercial aircraft market still looks good.

Another reason for Boeing underperforming during March is more tied to possible supply chain issues that kept deliveries relatively low in the first 2-3 months of the year and might place some question marks regarding planned production rate increases. We think that planned production hikes are still happening but also recognize that the strain on the supply chain is beyond levels that we have seen.

A look at some price targets announcements in March:
• Morgan Stanley has a hold rating on Boeing with a $373 price target.
• Barclays initiated with an overweight rating for Boeing shares with a $388 target.

So far, we have not addressed the trade war in this article, but it is obvious that the sentiment turn is pretty much tied to concerns over a trade war between China and the US. We think that nothing positive can come from a trade war eruption. We saw President Trump slamming tariffs on Chinese steel and aluminum and $60B in tariffs related to theft of intellectual property of American companies. Overall, if a trade war erupts, which might very well be the case since China also announced counter measures, Boeing might be affected as well. Though, it should be pointed out that a long chain of events, which we won’t discuss in this article, is needed for that. Earlier, we did point out that tariffs on steel and aluminum have a very limited impact on production prices. With the trade war, we are not necessarily concerned about the pricing of Boeing’s product, but more about the impact that a trade war has on the global economy and how that affects demand for aircraft in general. Though, we also believe that a trade war can be avoided and diffused even before Boeing is going to be able to observe any cooling demand for its aircraft.

During the month, Boeing delivered the first Boeing 737 MAX 8 aircraft to Icelandair and SCAT Airlines. Probably the biggest news of the month was Hawaiian Holdings (NASDAQ:HA) dropping the Airbus A330neo in favor of the Boeing 787, though it should hardly come as a surprise. AeroAnalysis has covered the subject several times as did several other portals you can read the latest article on the subject here. While the deal was a blow for Airbus, the bigger deal that Boeing secured was a deal with Turkish Airlines for 25 Dreamliner aircraft with options for five more.

For the company, there were several milestones as the 10,000th Boeing 737 rolled off the production line, the first Boeing 737 MAX 7 took flight and the first Boeing 737 MAX 9 was delivered to Lion Air.

New in this recurring series is a section dedicated to Boeing’s Global Services business, which has become a major target for growth for the jet maker, and investments that should strengthen Boeing’s business going forward.

On March 1, Boeing entered into an agreement with S7 Technics for the use of AerData’s Engine Fleet Planning and Costing (EFPAC) system for managing leased and owned engines while Pobeda signed an agreement for Jeppesen Crew Pairing and Crew Rostering, both of which optimize crew planning to maximize productivity, safety and stability and selected Jeppesen Crew Pairing and the Boeing Alertness Model to improve crew planning capabilities. It’s one of the many deals we have seen in 2017 and are going to see going forward.

Sticking to services, Boeing has added Okay Airways to the list of customers for the Pilot Development Program.

Switching to Defense services, Boeing through a Boeing Global Services subsidiary entered into an agreement with the Qatar Armed Forces to modernize its logistics and business system via a software solution.

As Boeing is targeting expansion in the field of autonomous systems and capabilities, it has set up a new program in Australia marking the largest overseas program focused on the development of autonomous systems and capabilities.

Since the Olympic Winter Games, the tension between North Korea and South Korea has eased somewhat. In recent months, we saw defense stocks shining bright as the tension mounted. With the easing of tensions, we do not expect any cooling off in defense spending because overall, if we look at the Middle East and Russia, there still is a lot of tension in the air while NATO countries have yet to extend their defense spending.

During the month, Boeing received a $73 million contract for the service life extension of 4 Block II Super Hornets. It’s a small contract, but considering the size of the Super Hornet fleet, the potential revenue stream is significant.

A big deal came from Saudi Arabia as it entered a joint venture with Boeing to localize support for military and defense platforms aiming for a revenue generation of $22B by 2030. The move is a good one for Boeing but also marks an ongoing trend from setting up and strengthening defense industries overseas. We, however, view this as a positive since this increases Boeing’s chances of being selected for acquisition of military and commercial products in the future.

Boeing's shares declined in March, beyond levels of decline we saw on the broader markets. We remain positive about Boeing as the jet maker continues to sign important contracts in the fields of commercial aircraft, defense and services.

At current prices, however, we are not a buyer as Q1 results might come in light which might pressure share prices on top of the pressure that we are seeing on the broader markets due to concerns over trade war. Given all of those factors, we’d be looking to buy at prices far lower than the current level.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</s>SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co (BA.N) narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kg and 45,000 kg, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this leaves a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the “manufacturer’s empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative “manufacturer” scale is used.

“I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator,” said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. “A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations,” Hatcher added.

Boeing said in a statement that while the United States and China have both outlined positions that could harm the global aerospace industry, nothing drastic has happened yet.

“We will continue in our own efforts to proactively engage both governments and build on the recent assurances by U.S. and Chinese leaders that productive talks are ongoing,” it said.

Chinese airlines have been on a buying spree from Boeing and rival Airbus (AIR.PA) as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion center in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines (600029.SS), Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp (600115.SS) Chief Executive Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp (GD.N), also falls into the weight range targeted for tariffs.</s>SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing (BA.N) narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kilograms and 45,000 kilograms, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this leaves a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the “manufacturer’s empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative “manufacturer” scale is used.

“I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator,” said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. “A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations,” Hatcher added.

In a statement, Boeing said the tariffs “are still in the proposal stage, so we are assessing the situation.”

Chinese airlines have been on a buying spree from Boeing and rival Airbus (AIR.PA) as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion center in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines (600029.SS), Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp (600115.SS) CEO Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp (GD.N), also falls into the weight range targeted for tariffs.</s>SINGAPORE/SHANGHAI (Reuters) - China on Wednesday announced plans to place a 25 percent tariff on certain U.S. aircraft, in a move expected to affect some older Boeing Co (BA.N) narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.

But although several analysts said China had spared the newer 737 MAX - key to future Boeing profits - the impact remained uncertain because of a lack of detail in the announcement and the fact that not all airplane characteristics are published.

Boeing shares fell as much as 6 percent after China hit back at U.S. tariffs with the announcement of duties on key U.S. imports including soybeans, cars, beef and chemicals, as well as planes.

These include aircraft with an “empty weight” of between 15,000 kg and 45,000 kg, or 15 to 45 tonnes.

Depending on how “empty weight” is defined, this leaves a question mark over the fate of Boeing’s new big-selling 737 MAX 8 jet - though the larger MAX 9 and MAX 10 could be spared.

The stakes are high. The United States exported $15 billion of aircraft to China in 2016, ranking equally with agricultural products like soybeans as the biggest category of goods.

Several definitions of “empty weight” are used in the aircraft industry and the ministry document gave no explanation.

Two industry experts said the rules most likely refer to the “manufacturer’s empty weight,” or the core aircraft structure.

But manufacturers are usually shy about publishing this number because of its commercial sensitivity, while they do give estimates for the slightly higher “operating empty weight,” which includes airline crew and some equipment, but not fuel.

Yet even this number can vary according to an airline’s specific requirements, so it is seen as a guideline.

Whatever category is used, the range appears comfortably to include the current-generation 737 narrowbody aircraft, which is in the midst of being replaced by the newer 737 MAX.

Boeing documents available online list the “operating empty weight” (OEW) of the 737-700, 737-800 and 737-900 well within the tariff zone at 37.6 to 42.9 tonnes.

The “manufacturer’s empty weight” (MEW) would typically be about 1-1.5 tonnes lower, two airplane appraisal experts said.

In contrast, the newer 737 MAX 8 is heavier than its predecessor, with an operating empty weight of 45,070 kg, according to a Boeing document published in August 2017.

Depending on how rules are applied, this leaves it hovering close to the tariff border line and potentially still exposed to sanctions if the more conservative “manufacturer” scale is used.

“I would expect a non-variable weight (MEW) to be used as the benchmark, as OEW will vary from operator to operator,” said Stuart Hatcher, chief operating officer of UK-based advisory firm IBA, adding this would pull the jet below 45 tonnes.

Even if the more generous OEW weight format were used, not all 737 MAX 8s might escape as some use lighter layouts. “A 70kg drop is pretty easy once you get into the realms of low-cost carriers or standard single-class operations,” Hatcher added.

Boeing said in a statement that while the United States and China have both outlined positions that could harm the global aerospace industry, nothing drastic has happened yet.

“We will continue in our own efforts to proactively engage both governments and build on the recent assurances by U.S. and Chinese leaders that productive talks are ongoing,” it said.

Chinese airlines have been on a buying spree from Boeing and rival Airbus (AIR.PA) as air travel grows.

Boeing and China’s Commercial Aircraft Corp of China (COMAC) are expected to open a 737 completion center in the coastal city of Zhoushan to install interiors and paint liveries this year.

The bulk of published 737 orders from Chinese that have not yet been delivered are for the newer MAX version.

However, China Southern Airlines (600029.SS), Ruili Airlines and Okay Airways each have two 737-800s on order and Xiamen Airlines has four more, according to the Boeing order book.

Asked if the airline’s plane buying plans could shift away from Boeing, China Eastern Airlines Corp (600115.SS) Chief Executive Ma Xulun said on Wednesday “it’s too early to say, we will keep an eye on the situation of the China-U.S. trade war.”

Apart from some Boeing jets, the Gulfstream G650, a large corporate jet manufactured by General Dynamics Corp (GD.N), also falls into the weight range targeted for tariffs.</s>Indian carrier Jet Airways has finalised a deal to purchase an additional 75 Boeing 737 Max aircraft.

The carrier confirmed the deal in a brief stock exchange disclosure, but provided no other details on which variant of the narrowbody would be purchased.

The new deal is in addition to a previous order for a similar number of 737 Max 8s - a mix of firm orders and purchase rights - that was announced at the 2015 Dubai air show.

Fleet Flights Analyzer indicates however that orders for 21 737 Max 8s were cancelled at the end of 2017. Boeing's orders and deliveries website shows that at the end of February Jet's outstanding 737 Max 8 orders stood at 54 aircraft.

Jet's chief executive Vinay Dube had been looking to complete a deal for 75 additional narrowbody aircraft by the end of March.

"It will be for the next five years, so 2018 to 2023, to take delivery of all 150 aircraft. The first Max aircraft [from its 2015 order] will be delivered in 2018," Dube said during the 2017 Dubai air show.

Fleets Analyzer shows that Jet operates 72 737-800s, four -700s, four -900ERs and two -900s.
Jet Airways of India orders 75 Boeing 737 Max jets.