– **Air China to take 64 A320s, with 32 bound for Shenzhen Air**
– **China Southern will buy 96 narrowbodies and lease 19 more**
Airbus SE won one of its biggest-ever orders for 292 airliners worth more than $37 billion from four Chinese airlines, a coup for the European manufacturer as it tussles with Boeing Co. for dominance in Asia’s largest economy.
China Eastern Airlines Corp. will buy 100 A320neo narrow-body jets, while Air China Ltd. will take 64 units, with its Shenzhen Airlines subsidiary acquiring 32 more, according to separate company filings Friday. China Southern Airlines Co. said earlier it would buy 96 A320neos, as well as lease additional planes.
The announcements represent China’s first major jetliner orders in about three years and helps cement Airbus’s position in the market, where the European manufacturer has built an advantage thanks to a local final assembly line. Boeing has historically counted China Southern as its biggest customer, but business has slowed for the manufacturer in the wake of two crashes of its best-selling 737 Max model and as political tensions rise between Washington and Beijing.
The orders announced today add to robust demand from China. Airbus secured a $35 billion jet deal during a state visit by President Xi Jinping to the French capital in March 2019. Both manufacturers will be vying for more business at the Farnborough Air Show, which kicks off in the middle of the month at a venue south of London.
Airbus gained as much as 4% in Paris. Boeing shares fell 1.3% in premarket US trading.
The China Southern aircraft will be delivered from 2024 to 2027, according to a stock exchange filing Friday. The carrier will separately lease 19 A320neos. Handovers to Air China will span 2023 to 2027 and those to Shenzhen Airlines 2024 to 2026.
China Southern in May removed more than 100 of the US firm’s 737 Max jets from its near-term fleet plans, citing uncertainty over deliveries. The airline previously outlined plans to rapidly expand its 737 Max fleet, saying in March that 39 were due this year, building toward a total of 103 deliveries through 2024.
None of China’s other state-owned carriers have said if they might resume taking the Max once it’s officially back in service. China was the first to ground the plane following fatal crashes in Indonesia in October 2018 and in Ethiopia in March the following year.
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– **Air China to take 64 A320s, with 32 bound for Shenzhen Air**
– **China Southern will buy 96 narrowbodies and lease 19 more**
Airbus SE won one of its biggest-ever orders for 292 airliners worth more than $37 billion from four Chinese airlines, a coup for the European manufacturer as it tussles with Boeing Co. for dominance in Asia’s largest economy.
China Eastern Airlines Corp. will buy 100 A320neo narrow-body jets, while Air China Ltd. will take 64 units, with its Shenzhen Airlines subsidiary acquiring 32 more, according to separate company filings Friday. China Southern Airlines Co. said earlier it would buy 96 A320neos, as well as lease additional planes.
The announcements represent China’s first major jetliner orders in about three years and helps cement Airbus’s position in the market, where the European manufacturer has built an advantage thanks to a local final assembly line. Boeing has historically counted China Southern as its biggest customer, but business has slowed for the manufacturer in the wake of two crashes of its best-selling 737 Max model and as political tensions rise between Washington and Beijing.
The orders announced today add to robust demand from China. Airbus secured a $35 billion jet deal during a state visit by President Xi Jinping to the French capital in March 2019. Both manufacturers will be vying for more business at the Farnborough Air Show, which kicks off in the middle of the month at a venue south of London.
Airbus gained as much as 4% in Paris. Boeing shares fell 1.3% in premarket US trading.
The China Southern aircraft will be delivered from 2024 to 2027, according to a stock exchange filing Friday. The carrier will separately lease 19 A320neos. Handovers to Air China will span 2023 to 2027 and those to Shenzhen Airlines 2024 to 2026.
China Southern in May removed more than 100 of the US firm’s 737 Max jets from its near-term fleet plans, citing uncertainty over deliveries. The airline previously outlined plans to rapidly expand its 737 Max fleet, saying in March that 39 were due this year, building toward a total of 103 deliveries through 2024.
None of China’s other state-owned carriers have said if they might resume taking the Max once it’s officially back in service. China was the first to ground the plane following fatal crashes in Indonesia in October 2018 and in Ethiopia in March the following year.
FREUDE
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