Airbus Secures $17B Deal with China for 45 A330 Wide-Body Jets

Posted on July 6, 2015 linda strong aircraft parts

China Aviation Supplies Holdings has placed an order with Airbus for 45 A330 aircrafts, with possible plans in the future for 30 additional A330 aircrafts. This deal was signed during Chinese Prime Minister Li Kequiang’s visit to Toulouse, in which a ceremony was held where reporters and business leaders participated. This order for 45 A330 aircrafts will cost China $11 billion, plus the possibility of an additional 30 aircraft worth about $250 million each. If the second part of this order is fulfilled, totaling in 75 A330 aircraft, the value of this contract is anticipated to increase to $18 billion.

Airbus CEO and President Fabrice Brégier stated, “The package order is a new vote of confidence in our A330 Family aircraft, which is already the most popular wide-body aircraft in China.”

In this agreement, China Aviation Supplies Holdings is simply acting as the buyer for Chinese carriers. Airbus seems confident in this new deal, as they have clearly expressed their interest in the Chinese market. According to Brégier, “China is today the most important market for aviation in the world, we can be confident that air transport in China will continue to undergo rapid growth. We are honored to contribute to this development.”

Currently, Chinese operators have over 1,150 Airbus aircraft in service. This includes more than 980 A320 family, 150 A330 family, and five A380 airliners. This multi-billion dollar order has allowed Airbus to finalize plans to build a second plant in China for wide-body aircraft. This second plant will be built in Tianjin, next to an already existing A320 final assembly plant. Airbus has already estimated that between 2014 and 2033, China will require more than 5,300 new commercial passenger aircraft. Brégier was quoted saying: “We hope to have more orders in the future, but it's a project which makes a lot of sense and which gives us an advantage against our competition.”

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