Airbus and China; Airbus Big Win in China; 70 A320ceo Aircraft

Airbus A320 program has been celebrating; this weekend after landing a secured agreement in China; worth $7 Billion. The agreement is for 70 Airbus A320 family single-aisle aircraft. China is set to become the number one market for aircraft, in two decades. This order helps Airbus expand even further in China. Airbus also secured plans for a final assembly line for the A330ceo family to finish building the A330 family of aircraft in China.

The order for 70 A320ceo family aircraft; will be a mix between both the current generation A320-200 and A321-200 aircraft; with engines from Pratt & Whitney and GE. Deliveries should start around 2016. China has been a great market for the A320 Program, in less than a decade Airbus has double its market shares by more than 50%; after adding a final assembly line in China. Airbus hopes; the A330  family will see the same success as the A320 family after the A330 final assembly line is complete.

In a Bloomberg article, Airbus Chief Executive Officer Fabrice Bregier was quoted saying:

“In other parts of Asia, we start to see some winners and some losers, some companies that cannot grow as fast as they expected,”  “But this is life, it doesn’t mean the market is shrinking.”

Just this past month, A Shanghai airline operator Spring Airlines, became the first airline in China to operator the A320ceo family of aircraft with Airbus Sharklets; so the future for Airbus in China looks brights, with the new A330 assembly line. The upcoming A330neo and the A350 program, which will eventually make its way to China, and eventually the A320neo family. Airbus 320neo (New Engine Option) family of Jets has just begun its testing; this past month; Airbus will most likely move Manufacturing of the A320neo once it’s ready for mass production to the China assembly plant.

The A320neo program has more than 3000 orders already; Airlines like Air Asia, one of the A320ceo (Current Engine Option) largest operators has more than 100 orders for the A320neo aircraft’s, other airlines like China Southern and China Eastern, has yet to place orders for the A320neo aircraft, both China Southern and China Eastern are two of the largest operators in China of the A320ceo aircraft. China Eastern, who is the largest operator of A320ceo with more than 140 in aircraft in delivered to CEA and more than 60 still left to be delivered; the 3000 order book will only increase once these airliners start ordering.

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