Airbus

State-owned China Aviation Supplies Holding has signed a general terms agreement with Airbus to buy 130 aircraft at an estimated cost of $17bn.

The deal was signed in Beijing during German Chancellor Angela Merkel’s visit to China, and includes 30 wide-body A330 planes and 100 single-aisle A320 aircraft.

Airbus president and CEO Fabrice Bregier said: "This strong demand in China for the A330 has been the key driver behind our decision to set-up an A330 completion and delivery centre in Tianjin, China, next to the A320 family final assembly line and delivery centre in Tianjin, which has assembled and delivered more than 240 Airbus single-aisle aircraft."

Last year, Airbus signed its first agreement to set up an A330 completion and delivery centre in Tianjin with its Chinese partners.

"This strong demand in China for the A330 has been the key driver behind our decision to set-up an A330 completion and delivery centre in Tianjin, China."

Earlier this year, Airbus, Tianjin Free Trade Zone (TJFTZ) and the Aviation Industry Corporation of China (AVIC) signed a framework agreement.

Airbus has been battling with its rival Boeing to secure its presence in the Chinese market and the latest deal is considered to be an important one for the company.

The aircraft manufacturer announced that it will increase the production of A320 to 60 aircraft a month in 2019, by adding a production line at its factory in Hamburg, Germany. It will also integrate cabin furnishing activities for the aircraft produced in Toulouse, France, into the final assembly line, to harmonise the production process across all A320 family final assembly lines worldwide.

China currently operates more than 1,200 Airbus aircraft, including more than 1,000 A320s, more than 160 A330s and five A380s, in addition to freighters and corporate jets.

Last month, China’s flag carrier Air China took delivery of its 50th A330 in France. The aircraft was an A330-300 and the first 242 tonnes maximum take-off-weight (MTOW) version to be operated by a Chinese airline.

Image: China Aviation Supplies Holding signed a general terms agreement with Airbus to buy 130 aircraft at an estimated cost of around $17bn. Photo: courtesy of Airbus.