Airbus has secured a significant order for 55 aircraft from two Chinese airlines, valued at approximately $12.4 billion at catalogue prices. The deal includes 15 widebody A350-900 jets for Air China and 40 narrowbody A320neo aircraft for its subsidiary, Shenzhen Airlines. The agreement was announced on Wednesday and is subject to approval from the airlines' shareholders and relevant state authorities, according to Air China.
Fleet Optimization
The new A350-900 and A320neo aircraft are expected to enhance the operational efficiency of both airlines. They are designed to reduce fuel consumption and operating costs compared to older models. The purchase aligns with China's broader goals of carbon peaking and achieving carbon neutrality in aviation, as noted in Air China's statement. Deliveries of the A350 jets are scheduled between 2030 and 2032, while the A320neo aircraft are set to be delivered between 2029 and 2032.
Discounted Pricing
While the catalogue price for the aircraft totals $12.4 billion, Airbus is expected to offer significant discounts, a common practice in large orders within the aviation industry. The actual transaction price will likely be lower than the list price, as indicated by Air China. This order marks a continued partnership between Airbus and Chinese airlines amid a recovering aviation market.
The order is likely to influence the commercial aviation sector positively, particularly benefiting Airbus as it continues to capture market share from competitors. The deal may also impact the supply chain for aircraft components and related industries in China. Investors will watch for further developments regarding the approval process and any potential impacts on Airbus's production schedules.