Airbus signs $23 billion deal to sell 140 aircraft to China

Airbus has signed a huge deal to sell 140 aircraft to China Aviation Supplies Holding Company (CAS).

The agreement, signed during a visit by Chinese President Xi Jinping to Germany, is for 100 A320 family aircraft and 40 A350 planes, Airbus said.

The planes will be purchased by state-owned China Aviation Supplies Holding Company, which will then allocate the planes to Chinese airlines.

The agreement was signed in Berlin by Tom Enders, Airbus CEO, and Sun Bo, Executive Vice President of CAS, in the presence of visiting Chinese President Xi Jinping and German Chancellor Angela Merkel.

“This is a great endorsement for our leading products in both single aisle and wide body segments”, said Tom Enders. “China is today one of the world’s most important markets for aviation, and we are honoured to support the development and rapid growth of China’s civil aviation with our competitive product portfolio.”

The world’s passenger aircraft fleet above 100 seats is set to more than double in the next 20 years to over 40,000 planes as traffic is forecast to grow at 4.4 percent per year. Emerging markets such as China continue to be an engine for growth, with domestic traffic to become the world’s largest market, according to Airbus’ latest Global Market Forecast 2017-2036.