Airbus signs mammoth Chinese deal for 300 aircraft

Airbus has a signed a deal for 300 aircraft with state agency China Aviation Supplies Holding Company worth an estimated $US35 billion at list prices. The two signed a general terms agreement in Paris during the visit of Chinese President Xi Jinping for 290 single-aisle A320 family planes and 10 widebody A350 XWB aircraft. READ: New carrier StarLux signs deal for 17 A350s. The deal was bigger than expected and the European manufacturer said it reflected the strong demand in all markets from Chinese carriers. It estimates in its latest market forecast that China will need about 7,400 new passenger and freighter aircraft in the next 20 years.  This represents more than 19 percent of the world total demand for over 37,400 new aircraft. By the end of January 2019, Airbus said its in-service fleet with Chinese operators totaled some 1,730 aircraft. The majority of these — 1,455  aircraft — are A320 family and 17 are A350 XWB family planes. Airbus also has a final assembly line in Tianjin, the first established outside of Europe, and last year celebrated the facility’s 10^th anniversary. “Our expanding footprint in China demonstrates our lasting confidence in the Chinese market and our long-term commitment to China and our partners,” said Airbus Commercial Aircraft president Guillaume Faury, who signed the deal with CAS chairman Jia Baojun. The order comes after a relatively slow start to 2019 for the planemaker and Faury said the aircraft would be built in both Tianjin and Europe. The good news contrasts sharply with the woes of rival Boeing as it grapples with the grounding of the latest version of its  737 workhorse after two fatal crashes in less than five months. Boeing has also been caught up in trade tensions between China and the US and commentators have suggested the order may be a sign Airbus is benefiting from the impasse. The A320 family has been phenomenally successful for Airbus with more than 14,600 aircraft ordered and over 8,600 delivered. The latest versions belonging to the A320neo family have garnered more than 6500 orders from over 100 customers since launching in 2010.