French Aerospace Company Airbus said on Wednesday that the company has won a major contract from China which includes 140 planes worth of $22.8 billion.
The contract was finalized after the visit of Chinese President Xi Jinping to Berlin. The European aircraft manufacturer said, they have inked an agreement between Airbus and China Aviation Supplies Holding Company (CAS) to provide China with 140 new aircrafts, the biggest contract Airbus got after a long time, said CEO Tom Enders.
There are one hundred A320 single-aisle planes and forty A350 wide-body planes in this deal. The deal indicated the strong demand from Chinese airline industry in all segments, including low-cost, domestic, international and long-haul market”, said Airbus in a statement.
Airbus also commented on the overall market and said, “market analysis and forecasts suggest growing demand for jets more than 100 seats around the world, more than 40,000 aircafts could be manufactured to fill the demand in next 20 years, demand is largely expected from developing markets.”
We had 5 to 6 percent of market share in China by mid 1990s and now we have almost 50% of market share in China, said Enders.
Airbus further commented on their previous achievements and said, our A320 planes are one of the world’s best single aisle jets, we had more than 13000 orders worldwide and delivered 7,600 planes so far.
Last year January, BOC aviation which is owned by Bank of China made an order to 30 A320 Airbuses worth $3 billion to meet the growing demand.
During the Paris Airshow last month, Airbus announced $40 billion of orders.
However, Boeing also got significant orders on that occasion, total of 571 orders of their new 737 MAX 10 jets worth of $75 billion.