Airbus strikes a blow in China. While economic uncertainties raise fears of a slowdown in aircraft orders from airlines, the European aircraft manufacturer signed a colossal success this Friday in China with the conclusion of several sales for a total of 292 A320 NEO, worth of $37 billion. This amount pharaonic is divided between four Chinese airlines: China Eastern Airlines (100 copies), China Southern (96), Air China (64) and its subsidiary Shenzhen Airlines (32).
Unlike 2019, when 300 aircraft had already been sold, these orders were the subject of separate contracts with the different companies and not just a group agreement with the buyer. Chinese State CASC (China Aviation Supplies Holding Company). Airbus nevertheless specifies that certain criteria must still be met before registering these devices in its order book.
Deliveries from 2023
The aircraft are divided between all models of the A320 NEO family, but with a majority of A321 NEO and only a handful of A319 NEO. Enough to supply the Airbus production line in Tianjin, whose conversion to accommodate the A321 must be completed by the end of the year in order to meet the growing demand for this aircraft. The European sites in Toulouse and Hamburg will also be mobilized, because the needs of Chinese companies are urgent. The first deliveries are indeed scheduled from 2023. According to Archyde.com, the arrival of the planes will continue until 2027, with a peak in 2024. In view of this schedule, the first planes are already integrated into the production flow. .
These dates are surprising when Airbus has been explaining for months that it will no longer have delivery slots available for the A320 NEO family for several years (Easyjet recently mentioned the date of 2027). A criticism skilfully swept aside by Christian Scherer, its commercial director, who suggests that the negotiations began a long time ago: “We salute the excellent work of George Xu (Chief Executive Officer of Airbus China) and of the entire Airbus China team as well as our customers’ teams for bringing to fruition these long and in-depth discussions that have taken place throughout the difficult COVID pandemic.”
The A320 NEO overtakes the 737 MAX in China
These orders seem to definitively confirm the domination of the A320 NEO in China once morest the Boeing 737 MAX. It has certainly sold nearly 200 copies in the country, and has also been selected by the four companies mentioned above. But only China Southern has committed for a significant amount of 50 aircraft, China Eastern and Air China are satisfied with regarding fifteen copies and Shenzhen Airlines with five. Above all, Boeing has not concluded a contract for its 737 MAX in China since 2016, except for three aircraft for the lessor ICBC Leasing.
Opposite, Airbus was already at nearly 300 orders and will therefore double its total. Above all, with the contribution of leased aircraft, nearly 500 A320 NEO family aircraft are in service in the country.
UK orders in June
This announcement comes following a successful month of June for Airbus, following an order for 14 aircraft (11 A320neo and 3 A321 NEO) obtained from the IAG group (British Airways, Iberia, Aer Lingus, Vueling) or even that signed by Easyjet, which converted a purchase option on 56 A320 NEO aircraft into a firm order. And the month ended with the sale of two A350F Silk Way West Airlines.
A fin mai¸ over the first five months of the year, Airbus posted 364 gross orders including a large majority of medium-haul. This is almost four times more than last year at the same time.
When the contracts with the various Chinese companies are counted, like those of June, the European manufacturer’s annual order book will leap forward to approach 700 aircraft.
Boeing far behind
What relegate Boeing to the background: the American aircraft manufacturer peaked at 236 orders at the end of May and has not announced anything since. This is a setback for him, who already had 380 orders at the end of May 2021, before adding more than 200 more for the month of June alone, largely thanks to a giant contract from United Airlines to support the restart of the 737 MAX.
The Farnborough air show, from July 18, might change the cursors, aircraft manufacturers and airlines are always fond of announcement effects by unveiling major contracts already concluded during this type of event. But, following being overtaken in 2021, Airbus seems to have taken a comfortable advantage in 2022.
