Travel (& State Visits) = Plane Sales

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The battle for a slice of Chinas growing aircraft market continues to rage, but it is an interesting battle in which both Airbus and Boeing are long-term, strategic suppliers with strong political ties. It is therefore no surprise that both are benefiting from the latest round of purchases (and state visits) – Chinese airlines have recently ordered 150 planes for US$10 billion from Airbus, and at least 42 planes for US$6 billion from Boeing.

In addition to reports of heavy discounting on both sides, Airbus has also announced plans to expand its local production and assembly operations, a move that is obviously attractive to the Chinese.

Reports note that Chinese airlines flew 121 million passengers last year, 16 percent up on 2003, and that the new planes are needed to keep pace with demand from business and leisure travelers. Boeing is reported to have estimated that spending by Chinese airlines will reach US$183 billion in the next 10 years.

Airbus wins China deal for 150 planes
Reuters – USA
PARIS (Reuters) – Airbus signed a $10 billion deal to supply 150 single-aisle passenger jets to China on Monday, scoring its largest deal with Beijing in what …

Airbus may build jets in China
Scotsman – United Kingdom
TOULOUSE, France (Reuters) – Airbus agreed with Chinese Premier Wen Jiabao on Sunday to study the possibility of setting up an assembly line in China — a move …

BBC NEWS | Business | Chinese plane sale boosts Boeing
Boeing agrees a $6bn deal to sell 42 of its new 787 Dreamliner planes to four of China’s leading carriers.

2 Responses to “Travel (& State Visits) = Plane Sales”

  1. Archive » Christmas Comes Early for China Sourcing| China Business Blog Says:

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  2. Archive » Strategy (and Policy Alignment) Pays Off| China Business Blog Says:

    […] ws State visits from the France and the US often result in big trade deals – especially for planes…and especially when a company makes a good strategic play in relation […]

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