With Boeing’s 737MAX currently out of China markets, Airbus has seized the opportunity to capture the Chinese narrowbody market. As per a statement by China Aviation Supplies (CAS) Holding, China's state aircraft buying agency officially signed orders to buy 140 Airbus planes worth about $17 bn, Reuters reports.
The formal signing took place last week during German Chancellor Olaf Scholz’s visit to China. The purchase agreement includes 132 A320 aircraft and eight A350s.
China’s three regional airlines, Air China, China Eastern, and China Southern, had announced one of the biggest orders post-pandemics in July with a total of 292 Airbus jets.
Airbus said that the orders are all pre-existing orders, with some included in an order for 292 jets announced earlier this year.
Recently, China Southern cancelled the scheduled Boeing 737 MAX flights, on the day of the departure, rising several speculations about the 737 MAX’s return to service in China.
Meanwhile, Boeing is offering around 140 of 737 MAX jets that were scheduled for delivery to Chinese operators to Air India. The Indian airline is attempting a fresh start under new owners – The Tata group and planning a massive fleet overhaul; is presently in talks with lessors, OEMs, and other airlines.
Boeing states that it plans to restore its financial strength over the next three years, after a string of losses in the wake of two 737 MAX crashes and other problems. Boeing Chief Financial Officer Brian West said the company expects to generate about $100 billion in annual sales by 2025 or the next year, a level it has not reported since 2018.