Airbus to sell 140 planes worth $23 billion to China

Airbus is also discussing the possibility of selling a A380 superjumbo jet to China as part of a separate deal.

On Wednesday Airbus stated it has signed an agreement to sell 140 aircrafts to China, in a deal worth nearly $23 billion at list prices. The agreement, signed during Chinese President Xi Jinping’s visit to Germany, is for the sale of 100 A320 family aircrafts and 40 A350 airplanes.

“It’s one of the biggest deals that we’ve signed in a long time,” said Tom Enders, Airbus Group’s Chief Executive.

The airplanes will be purchased by China’s state-owned China Aviation Supplies Holding Company, who will then allocate them to other Chinese airlines.

Incidentally, the sale of the A320s will be composed of a mixture of older CEO and the newer NEO variety with the majority of the A350 being for the 900 model.

As per Enders, 50% of the A320 family of airplanes is likely to come from Airbus’ assembly line in China.

This is the first public appearance made by Enders following the roll out of its new structure: its parent recently completed a merger with its dominant plane manufacturing arm, as a result the company’s commercial sales team now reports to Enders.

“This is merely a burden sharing mechanism because the focus should be on execution and this is what it’s all about,” said Enders in reference to the recent structural streamlining in the company.

He went on to add, the shak-up now allows, Bregier to focus on deliveries.

“We have plenty of challenges on the execution side, be it the transition to the NEO, the ramp-up of the A320 family, the 350 family, not to mention the A400M, which is not entirely solved,” said Enders.

Enders also mentioned that Airbus is in talks with China a propos the sale of a A380 superjumbo, the sales of which are slow moving.

“It won’t happen overnight. It has to be intensively discussed,” said Enders.

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