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Tuesday 20th March 2018

China Orders 300 Airbus Aircrafts

Business

7Dnews London

Tue, 26 Mar 2019 00:17 GMT

Airbus signed a deal worth tens of billions of dollars on Monday to sell 300 aircrafts to China as part of a trade package coinciding with a visit to Europe by Chinese President Xi Jinping, a record high for Boeing.

The deal between Airbus and the Chinese government procurement agency, China Aviation Supply Company, which often coordinates top-ranked deals during diplomatic visits, includes 290 A320s and 10 A350s.

French officials said the deal was worth about 30 billion Euros. Aircraft makers usually offer substantial discounts.

The larger-than-expected order - equivalent to an order for 300 Boeing planes - was signed when US President Donald Trump visited Beijing in 2017.

It also coincides with the suspension of the Boeing 737 Max, which overshadows Boeing's hopes for large aircraft orders as a result of any improvement in US-China trade relations.

There is no sign of any direct relationship between the Airbus deal, China-US tensions or Boeing's fleet problems, but Chinese observers say Beijing has a long history of channeling diplomatic messages or trade-offs between suppliers through government aircraft deals.

The United States and China are close to a possible deal to ease their trade dispute for months, and until recently there was a speculation that any possible settlement would include a deal for ranging between 200 and 300 Boeing planes.


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