"Airbus" Won a $4.8 billion aircraft contract for China

Airbus has won a deal to supply 40 aircraft to China Southern Airlines worth about $4.8 billion, boosting its revenues in the aviation market at the expense of Boeing.

Xiamen Air and all of its Boeing aircraft have agreed to purchase the new narrow body Airbus A320neo series for deliveries from 2024 to 2027, according to a statement released Thursday. Prices are expected to be subject to the usual discount. rates.

The deal is another big blow for Airbus, which struck a $37 billion deal last July for the same aircraft type with four Chinese airlines.

The deal represents the first major Chinese order for the aircraft in three years and significantly boosts Airbus’ sales this year after it lost out to Boeing in the 2021 order race.

Boeing considers China Southern Airlines its largest customer in the region, but the US aircraft maker’s business has been slowed by the fatal accidents of its best-selling 737 Max jet and escalating political tensions between Washington, Beijing and Airbus. a local assembly line for the A320 in Tenjin province, giving it an additional competitive edge in this important market.

China was the first country to land a 737 MAX after two crashes and it has yet to return to service.

In May, China Southern Airlines removed more than 100 aircraft of this model from its short-term plans, citing supply uncertainty.

Airbus placed fewer orders than Boeing last year, with Max customers ramping up their fleets after the suspension period ended and slashing prices to boost sales, while the European company struggled with a lack of contract deliveries.

Airbus, headquartered in Toulouse, France, has 637 net orders for all of its models this year, compared to Boeing’s 388.

Source: Bloomberg agency.