A Massive Airbus Order Is Coming

Airbus is seeking to confirm a massive new aircraft order from China as part of an effort to expand its presence in the country.

According to Bloomberg News, the deal could be up to 300 planes as Chinese operators look towards Airbus to power their future fleets.

Despite 300 orders being labelled as the likely scenario, there has also been some internal discussion that this could easily rise to 500, depending on the deals handed down and the terms that can be agreed upon.

European Leaders are expected to visit Beijing shortly as part of a trade agreement, and as a result, discussions about the future of air travel will be at the forefront of the agenda.

However, the nature of this deal is subject to numerous conditions and ongoing discussions. China hasn’t had it easy recently, and its relationships with several nations, especially countries, have become a bigger focus.

Trade tensions can impact the signing of any deal, but what remains clear is that Chinese carriers are keen on expanding their backlog of new commercial aircraft, ranging from smaller to larger planes.

An order of this scale would be huge for Airbus in extending the backlog of their commercial aircraft series, whether single-aisle or wide-body, and give them a step ahead of their competitors.

Airbus Faces Great Competition

The importance placed on this contract, which could be signed with China for Airbus, is more than just being a sizable one; it has enormous ramifications for the future of the manufacturer.

China has become a highly contested location for the need for new planes. While Airbus and Boeing typically compete head-to-head, smaller planemakers such as Embraer are also seeking to expand their market share globally.

However, for Airbus, its biggest threat remains that of COMAC. This Chinese manufacturer has vowed to rival the European plane maker and its counterpart, Boeing, by not only capturing the Chinese market but also moving forward into Western markets.

COMAC believes it is well-positioned with its offering because it can offer better terms to its customers, given the reduced backlog, while providing planes that are comparable to Airbus and Boeing jets.

Analysts have concerns about the product COMAC has put forward, especially regarding its adoption on a global scale, given that certification is still required. However, it doesn’t mean they aren’t a threat.

Airbus has openly acknowledged that it views COMAC as a competitor. As a result, while this prospective deal wouldn’t rule out COMAC also securing further orders, it would be huge for the European company to obtain a larger grip and even capitalise on its competitor, Boeing.