The Airbus order from China signed last week at a head of state visit of Xi Jinping with Emmanuel Macron for 300 aircraft apparently includes repeat announcements of existing deals, and potential future deals that have not yet emerged as firm orders. The announcement was primarily political in nature, rather than a new firm order for 300 aircraft.
This order is similar to the 300 aircraft “umbrella order” that Boeing received from China during a state visit with Donal Trump in 2017. The Airbus
deal would have totaled about $35 billion at list prices, but between repeat announcements and discounts, the net new orders will be about a third of that total, at best.
Analysis
Aircraft deals in China are two-tiered, as the government must approve of deals negotiated with the airlines. As a result, contracts are not truly firm until government approvals are obtained, which can often be at head of state events where they draw news coverage.
We use cookies to optimize our website and our service.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
