Airbus is reportedly in discussions with China regarding a potentially significant aircraft order ahead of an upcoming visit to France by Chinese President Xi Jinping, according to two sources familiar with the matter. Xi Jinping is scheduled to make his first trip to Europe in five years next month, with trade expected to be a key topic of discussion amidst growing tensions between the EU and China.
Historically, China has indicated large jet orders in conjunction with state visits, but negotiations between Airbus and China’s CASC buying agency are anticipated to continue until the last minute and may not culminate in a deal, as per the sources.
While one source suggested that the package could involve hundreds of jets, the other cautioned that the talks are in a preliminary stage. Airbus declined to comment, and CASC could not be reached for immediate comment.
In April last year, Airbus announced plans to establish a second Chinese assembly line for its A320neo narrow-body family during a state visit to China by French President Emmanuel Macron, aiming to bolster its presence in the world’s second-largest aviation market.
As of 2024, the specific numbers of each Airbus aircraft type currently operating in China are not detailed in the resources available. The A320neo and the A321neo, which are highly popular among Chinese airlines due to their efficiency and suitability for short to medium-haul routes. The A330 family, particularly the newer A330neo, is used by Chinese carriers, typically for longer-haul routes. Airbus has even established a Completion and Delivery Centre in Tianjin for the A330 to better serve its Chinese customers. The A350 widebody aircraft is also part of the fleet of several Chinese airlines, appreciated for its fuel efficiency and long-range capabilities
Although Airbus has surpassed Boeing as a supplier to China amid escalating tensions between Washington and Beijing, expectations of new orders during Macron’s visit were not realized. Now, discussions are underway again for a potentially large-scale order ahead of Xi’s return visit, with the outcome partly dependent on the political landscape, according to the sources, who requested anonymity for confidentiality.
While the date of Xi’s visit to France has yet to be confirmed, diplomatic sources have suggested May 6-7. Macron received an exceptionally warm welcome during his visit to Beijing last year, seen as part of China’s efforts to strengthen ties with key European nations in response to the United States.
However, trade issues have since strained relations, with Paris supporting a European Commission anti-subsidy investigation into Chinese electric vehicle imports, which pose a threat to European companies in the EU market. France also introduced consumer subsidies for European-made electric vehicles in December last year.
According to Airbus, China’s air traffic is projected to grow by 5.3% annually over the next two decades, surpassing the global average of 3.6%. While China has previously divided jet purchases between Airbus and Boeing, deals with the U.S. aerospace manufacturer have slowed significantly in recent years amid trade and political tensions.
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Sources: AirGuide Business airguide.info, bing.com, reuters.com, afp.com
