Airbus, Boeing Ink Major New Orders

Airbus and Boeing each announced significant new order commitments today, as persistently strong sales in the commercial airplane sector continue to boost the balance sheets of the world’s top airframe makers.

In Airbus’s case, China Aviation Supplies Holding Company (CAS) signed a General Terms Agreement (GTA) for the acquisition of 30 A330 Family aircraft and 100 A320-family aircraft. The agreement covering the 30 A330s represents the firming of a commitment signed in June. Li Hai, president and CEO of CAS, and Fabrice Brégier, president and CEO of Airbus, signed the GTA in Beijing on Thursday in the presence of Chinese Premier Li Keqiang and visiting German Chancellor Angela Merkel.

 “With these 30 A330 options now firmed up, CAS’s total number of orders for the popular Airbus widebody is this year 75 aircraft,” said Brégier. “This strong demand in China for the A330 has been the key driver behind our decision to set up an A330 completion and delivery center in Tianjin, China, next to the A320 Family final assembly line and delivery center in Tianjin, which has assembled and delivered more than 240 Airbus single aisle aircraft. This will enable us to be even closer to our customers and to take our long-standing mutual beneficial partnership with China to a new height.”  

Airbus and its Chinese partners signed the first agreements on establishing an A330 completion and delivery center in Tianjin in March 2014, during a state visit to Paris by Chinese President Xi Jinping. In October 2014, Airbus, the Tianjin Free Trade Zone (TJFTZ) and the Aviation Industry Corporation of China (AVIC) signed a Letter of Intent (LoI) in Berlin, Germany, in the presence of the German Chancellor Angela Merkel and Chinese Premier Li Keqiang. The parties signed a framework agreement in July 2015 in Toulouse.

Airbus market forecasts call for China’s domestic air traffic market to become the world’s largest within the next 10 years, and traffic volumes to quadruple in the next 20 years. Over the next two decades, Airbus forecasts a demand in China for some 5,400 new passenger and freighter aircraft including 1,700 widebodies. 

Separately, Boeing’s order activity on Thursday involved a deal with a familiar partner in the form of El Al. The Israeli flag carrier agreed to an order for up to nine 787 Dreamliners worth as much as $2.2 billion at list prices. Three of the airplanes count toward Boeing’s firm order total, while the remainder stand subject to resolving some final details. 

El Al has also decided to least six more 787s from independent leasing companies as it replaces some of its existing long-haul fleet, increases capacity and provides greater route flexibility to and from its hub at Ben Gurion Airport in Tel Aviv.

An all-Boeing carrier since taking delivery of its first Boeing airplane in 1961, El Al now operates a fleet of 22 Boeing 737s, seven 747s, seven 767s and six 777s.