Airbus wins major order from Air China to firm regional hold
The deal adds to a series of successful sales campaigns for the European planemaker
Add BT as a preferred source
[BEIJING] Airbus won an order from Air China for 15 A350-900 widebody aircraft as well as 40 A320neo series for its Shenzhen Airlines subsidiary, with a total transaction value of about US$12.4 billion.
The deal, announced in a filing to the Shanghai stock exchange on Friday (Jul 17), adds to a series of successful sales campaigns for the European planemaker, which has gained an edge over Boeing in the world’s second-largest aviation market in recent years.
China typically orders aircraft from Airbus and Boeing in bulk and then distributes them among its state-owned carriers.
In March, Airbus won an order from China Eastern Airlines for 101 A320neo aircraft. Late last year, state-owned Air China bought 60 Airbus aircraft in a long-anticipated transaction worth US$9.53 billion. That same month, Airbus signed sales deals with private Spring Airlines and Juneyao Airlines for a combined US$8.2 billion.
Aircraft customers tend to receive steep discounts on list prices for airliners, particularly when large purchases are involved. Airbus and Boeing will compete for orders at this year’s Farnborough Air Show, which kicks off near London early next week.
Boeing has worked to end its lengthy order drought in China. During a May visit by Donald Trump to the country, the US President said China agreed to order 200 “big” Boeing jets, though it still remains unclear what aircraft were included in that agreement.
Prior to that accord, China hadn’t unveiled a major Boeing order since Trump last visited the country in 2017, and much of that deal was announced previously. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
