China Eastern recently ordered 25 Airbus A330neo jets, valued at US$9.35 billion, following a previous order three months prior. These acquisitions are viewed as strategic for China's aviation sector, aiming to absorb operational knowledge and supply-chain integration.
Key facts
- •China Eastern ordered 25 Airbus A330neo jets last month, with a catalogue price of US$9.35 billion.
- •The airline had placed another Airbus order three months prior to the latest acquisition.
- •China’s CAAC reportedly withheld approvals for nearly 20 completed Airbus aircraft earlier this year.
- •This contributed to Airbus’s lowest first-quarter deliveries since 2009, with €5 billion (US$5.7 billion) in aircraft undelivered.
- •Airbus opened its second A320 family assembly line in Tianjin last October, its 10th worldwide.
- •Airbus held 55 percent of China’s commercial aircraft market last year.
China Eastern, an airline that operates the inaugural commercial routes of China’s home-grown C919 passenger jet, placed an order for 25 A330neo jets from Airbus last month. The catalogue price for this order is US$9.35 billion. This follows another Airbus order made by the airline just three months earlier.
By the numbers
Strategic Implications of Airbus Orders
The A330neo is a widebody jet, a segment where the Commercial Aircraft Corporation of China (Comac) currently lacks a product. These orders are considered strategic, representing capital paid for operational knowledge, trained personnel, and supply-chain integration that China’s aviation sector aims to absorb over time.
Airbus Deliveries Face Administrative Delays
Earlier this year, China’s Civil Aviation Administration (CAAC) reportedly withheld approvals for nearly 20 completed Airbus aircraft. Airbus CEO Guillaume Faury described this as an “administrative delay.” This hold-up contributed to Airbus’s lowest first-quarter deliveries since 2009, leaving approximately €5 billion (US$5.7 billion) in completed aircraft undelivered. Analysts suggest that the relationship with Airbus has become leverage for Beijing’s pressure on the European Union.
Airbus's Long-Standing Presence in China
The relationship enabling these dynamics has been built over two decades. Last October, Airbus deepened its presence by opening its second A320 family assembly line in Tianjin, which is its 10th final assembly line worldwide. This opening occurred nine days after a similar ceremony in Mobile, Alabama, a sequence seen as an effort to balance US-China trade tensions. Since 2008, the Airbus operation in Tianjin has assembled more than 780 A320 aircraft, with most of its production going to Chinese airlines. Last year, Airbus held 55 percent of China’s commercial aircraft market.
Timeline
- Last monthChina Eastern ordered 25 A330neo jets from Airbus.
- Three months earlierChina Eastern placed another Airbus order.
- Earlier this yearChina’s CAAC reportedly withheld approvals for nearly 20 completed Airbus aircraft.
- Last OctoberAirbus opened its second A320 family assembly line in Tianjin.
- Nine days afterA similar Airbus ceremony took place in Mobile, Alabama.
- Since 2008The Airbus operation in Tianjin has assembled more than 780 A320 aircraft.
- Last yearAirbus held 55 percent of China’s commercial aircraft market.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
