China Orders Airbus Aircraft

China expects to sign a deal with Airbus for a major order.  Concurrently, Airbus has signed an agreement that might pave the way to opening an assemby line in China.  Such a move is unprecedented for Airbus, which assembled planes now only in its largest home countries, France and Germany.

The Chinese government may purchase as many as 150 signle-aisle Airbus planes.  That order would be valued at approximately USD$9.6 billing at list prices. 

Last December Airbus company officials and Chinese Premier Wen signed an agreement that spells out greater cooperation.  An assembly line for its single-aisle planes in China, if that takes place, would have great marketing value for Airbus in China.  However, though highly visible, final asembly represents only a fraction of the total cost of building an aircraft.

Demonstrating the country’s voracious appetite for aircraft, China has also recently crafted a similar deal with Boeing Co. for as many as 150 single-aisle 737 jets, including 70 firm orders.  Chinese aviation authorities have said they plan to acquire as many as 650 single-aisle jets in the next five year.