China Signs $17 Billion Deal to Buy 130 Airbus Planes
Kyunghee Park mangogemini
Andrea Rothman AEROisme
October 28, 2015 — 9:12 PM PDT Updated on October 29, 2015 — 4:06 AM PDT
China signed a deal to buy 130 planes from Airbus Group SE worth $17 billion, firming up purchase options announced earlier this year and intensifying the race to dominate what’s projected to become the world’s biggest aircraft market.
The agreement for 30 twin-aisle A330 and 100 single-aisle A320 planes was signed Thursday during a Beijing meeting between Chinese Premier Li Keqiang and German Chancellor Angela Merkel, Airbus said in a statement. The purchase was among a number of deals signed at the meeting.
Airbus and Boeing Co. are competing to carve up the Chinese aircraft market, expected to become the world’s largest over the next two decades. China’s economic growth and the emergence of budget airlines are making air travel affordable to more people, prompting carriers such as Air China Ltd. and China Southern Airlines Co. to expand their fleets.
“Chinese demand for travel is growing and China will need more planes to meet that demand,” said Shukor Yusof, founder of Endau Analytics consultancy in Singapore.
The planemaker announced plans last December to cut monthly production to six A330s a month by 2016, from 10 now, as it transitions to the newer model. An order for 30 more planes means five months of work for the A330 line.
Airbus shares rose as much as 2.5 percent to 61.13 euros and were up 0.8 percent at 12:04 p.m. in Paris. The stock has surged 45 percent this year, valuing the company at 47.4 billion euros ($51.9 billion).
China has encouraged foreign planemakers to expand their local footprints as its own fledging aerospace industry takes shape. Airbus assembles A320s, most of which go to the Chinese market, at a factory in Tianjin. The European planemaker said in July it was finalizing an agreement with Chinese authorities to build a completion center for A330s.
Boeing won an order last month for 300 jets from Chinese carriers and lessors. The company said at the time it would soon open its first Chinese plant for 737 single-aisle planes.
China’s growing demand also is attracting interest from Russia, which plans to work with China on a wide-body plane that would compete with Boeing and Airbus jets. Russia’s United Aircraft Corp. and Commercial Aircraft Corp. of China, known as Comac, are discussing a work plan building on a memorandum of understanding signed in May 2014, Russian Deputy Industry Minister Andrey Boginsky said earlier this year.
China will become the world’s biggest air travel market by 2034, with one in five passengers traveling to, from or within the country, the International Air Transport Association said in April. About 70,000 flights -- some 10 percent of the world’s total -- operate to, from, or within mainland China every week, or according to IATA.
By 2020, 13 Chinese airlines will have more than 100 planes in their fleets, up from six carriers as of November 2014, the CAPA Centre for Aviation said last year. China Southern is Asia’s biggest carrier by fleet size with over 400 planes, which moved more than 100 million passengers last year.
(Earlier versions of this story corrected the number and type of planes, and the currency of the deal.)
http://www.bloomberg.com/news/articles/2015-10-29/china-signs-17-billion-euro-deal-to-buy-30-airbus-a330-planes
Kyunghee Park mangogemini
Andrea Rothman AEROisme
October 28, 2015 — 9:12 PM PDT Updated on October 29, 2015 — 4:06 AM PDT
- Deal steps up competition with Boeing to sell to China
- China firms up options taken in June for A330 jetliners
China signed a deal to buy 130 planes from Airbus Group SE worth $17 billion, firming up purchase options announced earlier this year and intensifying the race to dominate what’s projected to become the world’s biggest aircraft market.
The agreement for 30 twin-aisle A330 and 100 single-aisle A320 planes was signed Thursday during a Beijing meeting between Chinese Premier Li Keqiang and German Chancellor Angela Merkel, Airbus said in a statement. The purchase was among a number of deals signed at the meeting.
Airbus and Boeing Co. are competing to carve up the Chinese aircraft market, expected to become the world’s largest over the next two decades. China’s economic growth and the emergence of budget airlines are making air travel affordable to more people, prompting carriers such as Air China Ltd. and China Southern Airlines Co. to expand their fleets.
“Chinese demand for travel is growing and China will need more planes to meet that demand,” said Shukor Yusof, founder of Endau Analytics consultancy in Singapore.
Foreign Plants
The 30 A330s firm up options taken in June, when China announced an order for 45 of the wide-body aircraft plus options for 30 more. The follow-on order will help Airbus bridge the gap as it moves from the existing A330 model to a variant with more fuel-efficient engines that will enter service in 2017.The planemaker announced plans last December to cut monthly production to six A330s a month by 2016, from 10 now, as it transitions to the newer model. An order for 30 more planes means five months of work for the A330 line.
Airbus shares rose as much as 2.5 percent to 61.13 euros and were up 0.8 percent at 12:04 p.m. in Paris. The stock has surged 45 percent this year, valuing the company at 47.4 billion euros ($51.9 billion).
China has encouraged foreign planemakers to expand their local footprints as its own fledging aerospace industry takes shape. Airbus assembles A320s, most of which go to the Chinese market, at a factory in Tianjin. The European planemaker said in July it was finalizing an agreement with Chinese authorities to build a completion center for A330s.
Boeing won an order last month for 300 jets from Chinese carriers and lessors. The company said at the time it would soon open its first Chinese plant for 737 single-aisle planes.
Booming Market
Chinese airlines will need 6,330 new planes in the next 20 years, worth some $950 billion, according to a Boeing forecast.China’s growing demand also is attracting interest from Russia, which plans to work with China on a wide-body plane that would compete with Boeing and Airbus jets. Russia’s United Aircraft Corp. and Commercial Aircraft Corp. of China, known as Comac, are discussing a work plan building on a memorandum of understanding signed in May 2014, Russian Deputy Industry Minister Andrey Boginsky said earlier this year.
China will become the world’s biggest air travel market by 2034, with one in five passengers traveling to, from or within the country, the International Air Transport Association said in April. About 70,000 flights -- some 10 percent of the world’s total -- operate to, from, or within mainland China every week, or according to IATA.
By 2020, 13 Chinese airlines will have more than 100 planes in their fleets, up from six carriers as of November 2014, the CAPA Centre for Aviation said last year. China Southern is Asia’s biggest carrier by fleet size with over 400 planes, which moved more than 100 million passengers last year.
(Earlier versions of this story corrected the number and type of planes, and the currency of the deal.)
http://www.bloomberg.com/news/articles/2015-10-29/china-signs-17-billion-euro-deal-to-buy-30-airbus-a330-planes
» utube 7/25/24 MM&C Iraq Dinar Update - IQD Revaluation-Key Indicators - Deposit Insurance -Arbitra
» utube 7/23/24 MM&C Iraq Dinar-Prime Minister Advisors-Saleh-Al-Nusairi-Facts bringng facts-Reforms
» MMK&C 7/21/24 Government Advisor: Adopting auditing of foreign transfers contributes
» MM&C 7/21/24 Proposed measures to address the rise of the dollar
» Iraq ranks high in income inequality among citizens
» Within months.. Al-Imar: The amount of loans disbursed amounted to about 750 billion dinars
» Parliamentary Integrity confirms the start of opening the files of former officials
» Iraq and the German Development Bank sign an amendment to the loan agreement to finance a number of
» Regional oil...between export ban and smuggling suspicions
» Economist: Faw Port is an important step towards sustainable economic development and a major gatewa
» Parliamentary Investment "Mocks" Solution to Housing Crisis in Complexes: "Joke" and Government Must
» Multi-million dollar agreement to support Iraqi agriculture
» From Chaos to Law.. The Crowd Breathes with the First Reading of “Service and Retirement”
» Oil Minister inaugurates first phase of associated water injection project in Rumaila field
» Water Resources: The reality of desertification in Iraq is better than before
» Disappearance of 50,000 Pakistani tourists in Iraq.. Government position: We will start the investig
» Iraq reveals the value of its agricultural exports: 400 thousand tons in 6 months
» Electricity directs the rapid implementation of the solar power plant project in Khanaqin
» Worth $20 billion.. Iraq is second in trade exchanges with Iran
» (56) megawatt card.. Opening of the gas power plant in Majnoon field
» Parliamentary Committee: Amending this law will address many problems
» Iraq and the German Development Bank (KFW) sign an amendment to the loan agreement to finance a numb
» Finance discusses regulating the work of government banks with international auditing firm Ernst & Y
» The Prime Minister receives the approval of the coalition of companies that won the investment oppor
» US Ambassador: We helped Iraq with $3.6 billion in the displaced file
» In two stages.. The Minister of Oil inaugurates the associated water injection project in the Rumail
» Who manipulated the budget settings? Adding 15 trillion dinars for the benefit of the people or for
» Statement of the Iraqi Communist Workers’ Party on the “Personal Status Law Amendment” Project
» The American arm has become short.. Iraq will eradicate the “SDF” from Syria
» The idea of the “Sunni region” is maturing again.. The insistence of Western politicians collides
» Iraq takes its share of negative development and faces “electronic blackmail”
» Education in Iraq: Between the lack of schools and the delay in providing supplies
» Economist lays out solutions to get rid of the dollar’s dominance: moving towards a currency baske
» The Presidency of the Republic issues a special pardon for a bank manager accused of embezzlement
» The Ministry of Agriculture reveals the volume of its exported products in numbers
» Transport reveals its latest steps towards lifting the European ban on Iraqi Airways
» "Doors are closed" in Parliament.. Will political pressures result in the election of a new presiden
» Prime Minister's Advisor: Kirkuk government formation will be decided within 20 days
» US dollar exchange rate stability in Baghdad
» Reconstruction: New applications for Housing Fund loans will be opened when liquidity is available
» The US Federal Reserve adopts a new strategy towards Iraq.. The dollar is threatened with rising to
» First government comment on the leakage of 50 thousand Pakistanis in Iraq
» Parliamentary Integrity Committee announces keeping the session hosting the Minister of Water Resour
» Parliamentarian reveals the reason for the recent talk about the Sunni region
» Secrets of the Coordination Framework meeting with the Sunni forces.. Three proposals to resolve the
» Iraqis' spending on tourism is equivalent to the electricity budget.. What is the number of traveler
» "Two Papers of the Tashah in Parliament"... Warnings against implicating the legislative institution
» Turkish Minister reveals details about the security corridor in Iraq and the development road projec
» Does it stipulate the marriage of minors? What does the paragraph amending the Personal Status Law i
» One of the motives of the "salary scale".. Iraq is ranked 87th globally in "income inequality"
» "Vigilant Guardian"... Harmonious Supervisory Cooperation to Guarantee Citizens' Deposits in Iraqi B
» Saleh: The Central Bank's dollar reserves are solid and the GDP rate is very optimistic
» Economist accuses political parties of controlling the exchange rate on the black market
» Minister calls for establishing centers for Turkish commercial agencies inside Iraq
» 98% increase in foreign remittance sales at the Central Bank of Iraq auction
» Important meeting between Al-Sudani and the "Arabs of Kirkuk" to decide on the formation of the prov
» Housing projects in the Kurdistan Region are expensive internally and suitable externally
» Slight decline in the "green paper" in Baghdad stock exchanges
» OPEC: Iraq, Russia to compensate for surplus oil production
» Economist: The Iraqi banking sector has achieved significant growth
» Does integrity interfere with the work of institutions when they conduct investigations into suspici
» Parliamentary Finance: The Central Bank agrees to increase the capital of the Real Estate Bank to ex
» The region lags behind "electronic systems".. Transactions are still paper-based and the authenticit
» Media Authority: We are working on strategic agreements with global companies to bridge cybersecurit
» Al-Sudani stresses the importance of completing the formation of the Kirkuk government and reaching
» The region lags behind "electronic systems".. Transactions are still paper-based and the authenticit
» Iraq prepares to sign strategic agreements with global companies to bridge the digital divide in the
» Exporting (10) million liters of black oil daily.. Oil: Karbala has become an oil port that supplies
» Used as a gift and used for fraud.. The Central Bank warns against the circulation of commemorative
» Judge Faeq Zidane: International cooperation is important in the field of combating terrorism
» Al-Abbasi: Framing the relationship with Washington according to the Iraqi constitution
» Within 6 months.. The European ban on the green bird will be resolved
» Thwarting the smuggling of 21 million liters of petroleum derivatives
» Record
» Production of 24 thousand electric cars annually
» The second phase of the campaign (restricting weapons to the state) begins
» Inclusion of social protection beneficiaries in internal contracts
» The Prime Minister directs the rapid completion of Baghdad entrance projects
» Minister of Labor announces launch of health insurance service for social protection beneficiaries
» Via "Baghdad Today" .. Oil Minister announces increasing social benefits to 10 million dollars
» Joint Statement by the Iraqi and US Ministries of Defense
» Al-Sudani meets with a delegation from the American engineering consulting company KBR
» Kurdistan procrastinates to obtain the "lion's share".. Discontent over the delay in localizing empl
» Withdrawal is "Out of Reach"... Analysis of the Joint Iraqi-American Statement
» Al-Sudani stresses the importance of completing the formation of the Kirkuk government and reaching
» "Black Money" Fuels Investment Stock Exchange.. Countries That Prospered with Looted Iraqi Money
» Central Bank warns against circulation of $1 million commemorative notes
» Planning for “Al-Zawraa”: The five-year plan targets different sectors and does not include traditio
» “Unfair and deepens sectarianism”.. Why did the amendment to the Personal Status Law spark anger in
» Launching an electronic application for Iraqi retirees
» The crowd responds to Halbousi: A person convicted of forgery is not qualified to appoint himself as
» Al-Fayadh: We appreciate the Iraqi Parliament’s progress with the first reading of the service and r
» Nassif: The political process needs Al-Sadr and Al-Maliki to “rule” it
» Al-Mandlawi winks at Al-Halbousi: We reject insulting those who presented thousands of martyrs
» adhere to the rules of the Islamic religion and needs to be reformulated (tweet)
» Sarwa Abdul Wahid: The rivalry between Baghdad and Erbil is just "clacks"
» Parliamentary Finance: The Central Bank of Iraq’s measures to change the exchange rate did not achie
» Al-Sudani meets with Kirkuk Arabs to decide on the provincial government