Airbus Wins Chinese Approval for 60-Plane Order Worth $8 Billion
Airbus SAS won approval from China for orders of 60 planes valued at $8 billion, including 18 A330 wide-bodies that had been on hold amid Chinese opposition to a European Union proposal for tax carbon emissions.
The Chinese government gave its stamp of approval to the order today in signing a general terms agreement at a ceremony in the presence of Chinese President Xi Jinping and French President Francois Hollande, who is visiting for two days, according to a statement by Airbus today.
The order also includes 42 single-aisle aircraft in the A320 series. The agreement signed today will allow Airbus to list in its backlog aircraft that may have already been the subject of firm contracts but lacked the final government backing required for Airbus to consider them certain.
Airbus had said during much of 2012 that it would be unable to start building 45 A330s that were the subject of firm orders from Chinese carriers because the Chinese government opposed EU plans to charge for carbon emissions, and was refusing to provide final confirmations for those aircraft.
The EU late last year backed down on its plan to tax emissions.
The Chinese government’s China Aviation Supplies Holding Company, which signed for the single-aisle planes today, will at a later point have to “assign” them to carriers that need them. In some cases, the planes will be assigned to carriers that have already announced orders for specific planes. Some of the planes may go to new carriers who hadn’t yet publicly declared their intentions to add such planes to the fleet.
Order from China are different from those announced by carriers elsewhere, in that a “firm order” from that country isn’t sufficient to get the plane into the order book because further confirmation by China’s government is required.
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