Chinese mega deal confirms Airbus’ edge over Boeing

IAN LANGSDON

Visitors tour Boeing 787 airplanes displayed on the opening day of the 52nd Paris Air Show held at Le Bourget, north of Paris, France, 19 June 2017. The 2017 International Paris Air Show runs from 23 to 25 June.

Chinese mega deal confirms Airbus’ edge over Boeing


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At last month’s Paris Air Show Boeing secured twice as many orders as Airbus, closing 571 orders worth €60bn against Airbus’ 326. That was mostly on thanks to Boeing’s new 737 MAX 10 airliner, competing directly with the Airbus A320 best seller. Both planes are in the single-aisle 100 plus passengers category.

Airbus projects global demand for planes with more than 100 seats to double over the next two decades, reaching 40,000 aircraft. Much of this demand will come from emerging markets, particularly China.

In January 2016, China placed an order for 30 A320 valued at just under €2,4bn. But, on Wednesday, Airbus announced a massive €20bn order for 140 planes from China’s Aviation Supplies Holding Company (CAS).

Wednesday’s order includes 100 A320 single-aisle jets and 40 A350 wide-body aircraft. The order confirms strong demand by Chinese Airlines for aircraft that can service domestic, regional, and long-haul routes. For Airbus, the Chinese order is “one of the biggest contracts {to be} signed in a long time,” the company’s CEO Tom Enders said.

But, the sale also boosted Airbus’ dominance in the single-aisle aircraft category, having 13,000 order and 7,600 deliveries to date. Airbus has gone from a 6% share of the Chinese market in the 1990s to a 50% share today.

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