China Aviation Supplies (CASC) has officially signed a bulk purchasing agreement for 140 Airbus jets. The $17 billion deal comprises CASC's pre-existing orders, including July's record-breaking order of 292 aircraft.

Chinese growth for Airbus

Coinciding with a visit from German Chancellor Olaf Scholz, the bulk order will see another 132 Airbus A320 family jets and eight widebody A350s spread across China's rapidly recovering aviation industry. As of 2022, the country operates around 2,100 Airbus jets, with more on the way following a spree of orders through 2022.

"With the gradual recovery of China's air transportation market, it will maintain steady and rapid growth in the future. In order to adapt to the development of the aviation market and meet the needs of enterprises' transportation capacity, Airbus aircraft will be purchased in batches," CASC wrote in a statement.

A likely contributor to Airbus' success within China is its growing A320 final assembly line and A350 completion and delivery (C&D) center in Tianjin. Opened in 2009 as part of a long-term strategic partnership with the country, the center was expanded in 2017 to provide C&D capabilities for the A330 and later the A350.

Further expansion is planned later this year, as the facility anticipates assembly of its first larger-capacity A321 as demand for the jet increases within the country.

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Airbus has been pushing for sales of its popular A220, eyeing Western China's short-haul market. During a July conference, the European plane manufacturer expressed a desire to see the jet join Chinese fleets, promoting its significant usage of Chinese components and materials. Airbus hopes to continue the localization of the A220s supply chain, simplifying logistics and cementing its place within the Asia-Pacific market.

Boeing's subbing

Airbus currently holds a 53% market share within China, overtaking Boeing as icy geopolitical relations between the United States and China have largely pushed the company out of the market.

Boeing has previously expressed dissatisfaction at the snubbing. In a July statement, the US-based aircraft manufacturer urged both countries to enter a productive dialogue and support the mutual economic benefits of a thriving aviation industry.

State carrier China Southern Airlines was previously Boeing's largest customer, though the rapid decline in orders and deliveries has seen Airbus dominate the carrier's fleet. In October, China Southern Airlines canceled plans for the Boeing 737 MAX's return to service, leaving its outstanding orders in limbo.

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Boeing currently has 138 completed 737 MAX jets awaiting delivery for Chinese carriers, though it has reportedly begun marketing the aircraft to other airlines.

Speaking during the manufacturer's investment conference earlier this week, Boeing president and chief executive David Calhoun explained that its Chinese customers are still important to them, with the company working hard to recapture its previous support, though it does not require Chinese orders to meet its production targets.

Closing out its third quarter, Boeing holds 550 new orders, with 122 received in October alone. It currently has a backlog of over 4,300 jets, valued at $307 billion list price. Airbus holds a similar net order of 647 through the first nine months of the year, with its current backlog sitting at 7,294.

What are your thoughts on CASC's Airbus orders? Let us know in the comments.

Sources: Reuters, China Daily

• 

  Airbus

  Stock Code:

  AIR

  Date Founded:

  1970-12-18

  CEO:

  Guillaume Faury

  Headquarters Location:

  Toulouse, France

  Key Product Lines:

  Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380

  Business Type:

  Planemaker