Airbus SE found a welcome respite from sagging sales when it signed a $35 billion deal with China on Monday to sell 300 of its passenger jetliners to China Aviation Supplies Holding Company (CASC) during Chinese president Xi Jinping's ongoing state visit to France.
China typically places large orders for planes and allocates them to airlines via CASC or other Chinese aircraft leasing firms. CASC will buy 290 A320 narrow-body and 10 A350 wide-body jetliners, said a statement from the office of French president Emmanuel Macron.
Most of the aircraft CASC will acquire will be A320neo (for new engine option) and A321neo. Other planes in the deal are the classic or CEO versions of the A319, A320, and A321.
The Airbus price for the newest A320neo model comes to $110.6 million while the A350-900 sells for $317.4 million before discounts.
"The conclusion of a big (aviation) contract ... is an important step forward and an excellent signal in the current context," said Macron in a joint address with Xi.
The Airbus buy is the second massive order placed by CASC in the space of 15 months. In November 2017, CASC ordered 300 Boeing jetliners for $37 billion during Donald Trump's state visit to China. The order included 260 737s and 40 787/777s. The status of the 737 order is now uncertain in the wake of the crash of a 737 MAX 8 in Ethiopia on March 11 killing all on board.
The mammoth deal is a fresh blow to The Boeing Company, which continues to pay a heavy price for the crashes of two of its 737 MAX 8 planes within the space of five months. The 737 Max is the main global rival to the A320.
Analysts said the deal with China is a lifeline for Airbus, which in February canceled its A380 program due to weak sales. They said Airbus sales are enduring one of the slowest starts in the past decade. Airbus reported only four new orders in January and February compared to 103 cancellations.
China is the world's most important aviation market with its fast-growing middle class driving demand for more air travel.
