The White House announced four “trade transactions” worth over $25 billion to coincide with President Barack Obama’s trip to Bali, Indonesia today.
Among them is what the White House is billing as the “largest commercial aeroplane agreement ever for Boeing,” a $21.7 billion deal to sell 201 Boeing 737MAX and 29 Next Generation 737ER aircraft to Indonesia’s Lion Air. The agreement includes a $14 billion option to purchase another 150 jets.
The White House says the Boeing deal alone would support 110,000 jobs in 43 U.S. states — with the announced deals supporting more than 127,000 U.S. jobs in total.
The other agreements include the sale of eight Boeing 777-300ER wide-body aircraft to Singapore Airlines for $2.4 billion; the sale of 50 General Electric CFM56 engines to Garuda Airlines of Indonesia for $1.3 billion; and the sale of 12 Sikorsky Blackhawk helicopters to the Brunei Ministry of defence for $325 million.
Obama is on the resort island to take part in a summit of East Asian nations — the first time a U.S. President has taken part in one.
Read the press release below:
THE WHITE HOUSE
Office of the Press Secretary
EMBARGOED UNTIL 7:00AM EDT
November 17, 2011
EMBARGOED: FACT SHEET: U.S. EXPORT PROMOTION AND THE ASIA-PACIFIC
As part of the National Export Initiative, President Obama noted that the Asia-Pacific region – with its tremendous economic growth and its large and growing middle class – is a key market for U.S. exports. Those exports are generating jobs in every corner of the United States and across every major sector. They involve some of our country’s largest companies, but also an increasing number of small and medium-sized enterprises.
On the margins of the President’s trip, trade transactions were announced or showcased, exceeding $25 billion in total value (and an additional $14 billion in potential value) and supporting an estimated 127,000 U.S. jobs. These high-value, historic deals are good for the American companies who will export and for the thousands of suppliers who will contribute to the end product. These cross-border collaborations, both public and private, underpin the expanding strategic partnership between the U.S. and the Asia-Pacific, contributing to economic growth and development. Notable examples include:
Boeing 737s to Indonesia: The Boeing Company and Lion Air have reached agreement on the purchase of 201 Boeing 737MAX and 29 Next Generation 737ER aircraft. The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18. With 230 aeroplanes at a list price of $21.7 billion, this order represents the largest commercial aeroplane agreement ever for Boeing. The deal also includes options for a further 150 aircraft valued at $14 billion, bringing the total potential value of the deal to $35 billion. The order for 230 aircraft will support over 110,000 U.S. jobs at Boeing and at suppliers in 43 states. This represents one of the largest trade deals between the United States and Indonesia in history. It also represents the first commitment for the new 737MAX from an Asian airline. Lion Air is a fast-growing private airline that since its establishment in 2000 has rapidly grown to become the largest domestic airline in Indonesia, the world’s fourth largest country. Lion Air operates an all-Boeing fleet.
Boeing 777s to Singapore: The Boeing Company and Singapore Airlines have reached agreement on the purchase of eight Boeing 777-300ER wide-body aircraft with a total list price value of $2.4 billion, $2 billion in U.S. export content and supporting an estimated 11,000 U.S. jobs. In total, Singapore Airlines has ordered 85 Boeing 777s, 27 of which are 777-300ERs. Each 777 has over 3,000,000 parts. Every 777 carries the workmanship of approximately 11,000 small, medium and large companies on it.
GE Engines to Indonesia: GE is signing a contract to sell 50 CFM56 engines to Garuda Airlines of Indonesia, for $1.3 billion. This deal will represent $650 million in U.S. export content and support close to an estimated 5,000 U.S. jobs at GE’s plants in Ohio and North Carolina and at suppliers across the nation.
Sikorsky Helicopters to Brunei: Sikorsky (a subsidiary of United Technologies) has been selected by the Brunei Ministry of defence to supply 12 Blackhawk S-70i helicopters for the Royal Brunei Armed Forces Support Helicopter Project. The value of the deal is $325 million, with $200 million in U.S. export content supporting an estimated 1,100 U.S jobs. The deal also contains options for a second phase that will double the project’s size, value, and job creation. This is one of the largest defence procurements in Brunei’s history. Brunei and Sikorsky will now work to finalise the terms and conditions of the deal.
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