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NEWS: China signs up for 160 Airbuses today for US$17 billion

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  • NEWS: China signs up for 160 Airbuses today for US$17 billion

    Breaking news from Ming Pao newspaper in HongKong.

    China is signing up for 160 Airbus aircraft with the visiting French President in Beijing today. The contract includes 110 A320 and 50 A330. 10 of the A330s will go to China Southern.

    It does not specify whether those A320s will come from the new assembly line in China. Probably they will.

    The deal is worth US$17 billion.

    Original text in Chinese:

    傳中國買160架空中巴士 (12:19)

    消息指,中國同意購買160架空中巴士飛機,總值170億美元。

    消息指,有關交易包括110架空中巴士A320型客機及50架A330型客機。其中10架A330交付南方航公司。
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  • #2
    Another article on the deal:
    http://www.reuters.com/article/marke...0071126?rpc=44
    BEIJING, Nov 26 (Reuters) - European planemaker Airbus wore two masks in China on Monday -- the joy of landing what could be its biggest ever aircraft order by volume, contrasted with growing despair over the plunging value of the dollar.

    The paradox is the same one dominating Beijing talks between French and Chinese leaders this week -- how to tap into China's economic expansion without being trampled by imbalances in the global currency market, which Europe blames on Chinese policies.

    French President Nicolas Sarkozy and Chinese President Hu Jintao looked on as Airbus and China's state buying agency signed a "framework" deal that could lead to an order for 160 Airbus passenger jets worth $16.7 billion at list prices. That tops the previous record of 150 for the biggest Airbus deal in terms of planes sold, set by Sarkozy's predecessor Jacques Chirac on a similar visit to China in October 2006.

    But the strength of the euro against the dollar, the currency in which aircraft are sold, is frittering away Airbus's share of a global aviation boom as it competes with Boeing.

    And the head of Airbus parent EADS (EAD.PA: Quote, Profile, Research) did not wait for Monday's signing ceremony at the Great Hall of the People to add to recent company warnings over the impact of currency swings.
    Gotta wonder how well this'll go over with Airbus employees in Europe. Another blockbuster order for their company, yet Airbus keeps talking about job cuts and doing final assembly of the majority of this order in China. They sure as hell are not gonna like it.

    Comment


    • #3
      So will they also be ordering 160 Boeings? Don't they usually order like that?
      Follow me on Twitter! www.twitter.com/flyingphotog

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      • #4
        Originally posted by FlyingPhotog
        So will they also be ordering 160 Boeings? Don't they usually order like that?
        Used to be the case, but after Airbus got going with the Tianjin facility planes, China has focused more on Airbus. For the last 150-A320 order, China didn't order an equal number of 737s, though the China Southern Group placed their own orders for 85 737s.

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        • #5
          China signs up for 160 Airbuses today for US$17 billion

          With such a backlog of A330's to build, can Airbus set up an A350 line in Toulouse?
          Maybe they should move the 330's final assembly to the USA and save dollars, and give them space for the 350 line.

          Comment


          • #6
            Originally posted by chaser
            With such a backlog of A330's to build, can Airbus set up an A350 line in Toulouse?
            Without much problems. Final assembly for the A350 is still quite a few years away, and in the meanwhile Airbus is ramping up A330 output, fueled in part "thanks to" the A340's lackluster sales.

            Originally posted by chaser
            Maybe they should move the 330's final assembly to the USA and save dollars, and give them space for the 350 line.
            By the time Airbus would have the necessary legal rights and finished construction of an assembly line in the US, there won't be many more A330s to be produced anyway, so it's not worthwhile.

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