Airbus agreement in China: the company orders 300 aircraft while Boeing faces the crisis 737 Max

The European aircraft builder announced Monday that it has reached an agreement to sell 300 passenger aircraft to Chinese airlines. The agreement was signed during the visit of Chinese President Xi Jinping to France.

The order concerns 290 aircraft of the A320 family and 10 of the A350 line, Airbus (EADSF) In a statement, he said it was a sign of strong demand from all sectors of China's rapidly expanding aviation market, including "national long-haul flights, to low cost, regional and international ".
The European manufacturer did not specify the total value of the transaction and did not respond to a request for additional comment. Based on Airbus' list prices, aircraft are worth around $ 35 billion, but customers generally enjoy substantial discounts from list prices and can benefit from even greater discounts in case of huge orders .
Massive Airbus control contrasts with the problems Boeing faces, including the 737 Max, its best-selling airliner, unused around the world after being involved in two fatalities in less than five months. China was the first country to put the 737 Max to land earlier this month after the crash of an Ethiopian Airlines flight.

The 737 Max competes directly with the Airbus A320neo. The two single-aisle aircraft, which operate short and medium-haul routes, each collected thousands of orders from carriers around the world.

The Indonesian airline Garuda said last week that it was seeking to cancel a multi-billion dollar order for 49,737 Max Boeing aircraft.
French President Emmanuel Macron, right, and Chinese President Xi Jinping at a state dinner at the Elysee Palace in Paris on Monday.

The huge order of Airbus in China is similar to that announced by Boeing less than two years ago. The agreement, which also covers 300 aircraft, was made public during the visit of US President Donald Trump to Xi in Beijing in November 2017.

Both Airbus and Boeing's orders came from a Chinese government holding company that buys jet aircraft for state-owned carriers such as Air China and China Southern Airlines.

Boeing faces two crises after crash and grounding

It is therefore difficult to know which airlines are buying what and how many aircraft have already been included in the builders' order book.

Airbus has not responded to a request for comments asking for more information on the number of aircraft out of the 300 that counted Monday to have already been accounted for.

China is a giant market for both Airbus and Boeing – and its importance continues to grow.

According to the latest Airbus forecast in November, China will need about 7,400 new passenger and cargo planes by 2037.

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