• Nearly 300 Airbus planes have been ordered by three Chinese carriers.
• At least $37 billion worth of orders were won by Airbus.
• Airbus holds market share in the country to about 53 percent.

Boeing was unhappy when the China Three Airlines placed the largest order for Airbus aircraft, according to a report in the Global Times China. However, a number of issues contributed to Boeing’s loss of the contract.

According to Global times report, US plane manufacturer Boeing has suffered a setback as a result of the agreements reached by China’s three largest airlines to buy nearly 300 planes from Europe-based Airbus. In response to the new agreements, Boeing claimed that “geopolitical differences” are restricting its exports and called for “productive dialogue” between the governments of China and the US.

In stark contrast, Boeing expressed disappointment in a statement. “As a top US exporter with a 50-year relationship with China’s aviation industry, it is disappointing that geopolitical differences continue to constrain US aircraft exports,” Boeing said on Friday. “We continue to urge a productive dialogue between the governments given the mutual economic benefits of a thriving aviation industry. Boeing aircraft sales to China historically support tens of thousands of American jobs, and we are hopeful orders and deliveries will resume promptly.”

The source claims that Boeing is imposing restrictions on a number of areas, including the maintenance and repairs of Boeing aircraft, which affects the equipment’s capacity to operate safely and the dependability of aviation services. This matters a lot to airline operators.

Before the Boeing 737 Max crashes, analysts claim that China had a balanced market share for Airbus and Boeing aircraft. Additionally, the current crackdown on Chinese enterprises poses significant risks and hurdles for international corporations engaged in trade.

• China and Airbus relationship

With the signing of a Memorandum of Understanding on the Further Development of Industrial Cooperation in 2019, Airbus and China strengthened their already strong relationship. Under this agreement, both parties committed to taking concrete steps toward new initiatives involving single-aisle and wide-body Airbus aircraft.

Airbus has a wide and narrow body assembly plant in China. Both the first contemporary mainline aircraft assembly line in China and the first Airbus production facility outside of Europe are located in Tianjin. Over 500 planes have already been delivered by the facility to local airlines. Airbus said in 2021 that its Tianjin facility would grow and gain the ability to produce the Airbus A321 aircraft. The completion of the project is scheduled for the third quarter of 2022. More than half of all A320neo series aircraft orders are for the A321neo.

For the first time in over three years, China’s three largest state-owned airlines announced deals to purchase 292 A320neo aircraft from European aircraft manufacturer Airbus for a combined $37 billion. The additional orders, which the airlines estimate to be delivered between 2024 and 2027, will help them expand their flying capacity and fulfil their replacement needs when older aircraft are retired, they claimed.

China’s top 3 airlines will purchase nearly 300 Airbus A320neo aircraft.(Opens in a new browser tab)

• About 53% of the country’s market is held by Airbus.

Airbus’ continued investment in China in the past decade has helped lifted its market share in the country to about 53 percent now and steal a march over its US rival Boeing Co. According to reports, Airbus has dominated the Chinese market through increased manufacturing and investments there. This has boosted the country’s economy and allowed Airbus services to benefit airlines. Most airlines respond quickly to inquiries about safety and services. When there is a greater need for aircraft and the corporation needs to develop a long-term vision for the nation.

China’s TP500 freight drone makes its maiden flight.(Opens in a new browser tab)