{"id":4176,"date":"2019-04-02T11:54:45","date_gmt":"2019-04-02T16:54:45","guid":{"rendered":"http:\/\/planesintheair.com\/?p=4176"},"modified":"2019-04-02T11:54:51","modified_gmt":"2019-04-02T16:54:51","slug":"chinas-huge-airbus-order-padded-by-old-incomplete-deals","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=4176","title":{"rendered":"China’s Huge Airbus Order Padded by Old & Incomplete Deals"},"content":{"rendered":"\n
\"\"

Exclusive: China’s huge Airbus order padded by old or incomplete deals – source <\/figcaption><\/figure>\n\n\n\n

PARIS\n (Reuters) – A landmark order from China for 300 Airbus jets signed \nduring a state visit last week was bolstered by repeat announcements of \ndozens of existing deals and advance approval for deals that have yet to\n be struck, two people familiar with the matter said.<\/p>\n\n\n\n

Echoing\n an umbrella order for 300 Boeing jets awarded during a visit to Beijing\n by U.S. President Donald Trump in 2017, the headline figure for the new\n “framework order” for European jets was partly driven by political \nconsiderations, the people said.<\/p>\n\n\n\n

The\n Airbus deal would have been worth some $35 billion at list prices but \nthe amount of new business is lower, they added. Duplicate announcements\n included a deal for 10 A350 aircraft to an unnamed buyer, which \nrepresents a repeat announcement of an order for 10 jets by Sichuan \nAirlines at an air show last year.<\/p>\n\n\n\n

The\n disclosure takes some of the shine off an announcement widely regarded \nas the economic highlight of a trip to Europe by Chinese President Xi \nJinping. Nonetheless the deal marked a return to the aircraft market by \nChina’s state buying agency after a pause of over a year during global \ntrade tensions.<\/p>\n\n\n\n

The\n overall figure of 300 was introduced late in the process and after Xi’s\n visit was underway, although plane orders typically take months to \nnegotiate, one of the people said.<\/p>\n\n\n\n

Airbus declined to comment on detailed orders but left open the possibility that the large total contained gaps.<\/p>\n\n\n\n

The\n agreement “creates the approval framework for aircraft ordered by \nChinese airlines, be it existing orders or future orders,” a spokesman \nsaid.<\/p>\n\n\n\n

TRADE TIES<\/strong><\/p>\n\n\n\n

Airbus\n shares fell 0.7 percent on Tuesday, extending earlier losses after \nReuters reported gaps in the China deal. Airbus’ stock had risen almost \ntwo percent after China’s mega-order, signed in Paris on March 25 in \nfront of Xi and French President Emmanuel Macron.<\/p>\n\n\n\n

Industry\n sources say major planemakers play by similar rules when selling to \nChina, where they face a two-tier system of negotiations with airlines \nwithin a framework of state-backed umbrella deals that may be influenced\n by geopolitics.<\/p>\n\n\n\n

But\n the headline figures for new orders during high-profile diplomatic \nvisits, which for several years hovered around 150 aircraft for both \nAirbus and Boeing, have increased as trade ties between Washington and \nChina go through highs and lows.<\/p>\n\n\n\n

In\n November 2017, months before a trade war erupted with the imposition of\n tariffs, China announced an order for 300 Boeing jets during a visit to\n Beijing by U.S. President Donald Trump.<\/p>\n\n\n\n

Analysts\n expressed doubts at the time over how much of that was new business, \nand said part of the announcement represented renewed government support\n for deals already on Boeing’s books.<\/p>\n\n\n\n

“The most recent Airbus and Boeing deals followed a similar pattern,” said a China aircraft industry specialist.<\/p>\n\n\n\n

Boeing\n is now seen as next in line to secure a 200-300-plane order as part of a\n possible economic truce being negotiated to end the trade war, but the \nrecent grounding of one of its jets has cast uncertainty over the timing\n of the deal.<\/p>\n\n\n\n

Boeing\n and Airbus compete fiercely to serve the needs of the world’s \nfastest-growing airplane market, while bracing for future competition \nfrom China’s own aerospace industry.<\/p>\n\n\n\n

Analysts\n say Beijing tends over time to balance U.S. and European purchases, \nthough recent years have seen the rise of a growing number of \nindependent Chinese leasing companies and an increase in autonomous \ndecision-making by several airlines.<\/p>\n\n\n\n

(Reporting by Tim Hepher, Additional reporting by Marine Pennetier; Editing by Sudip Kar-Gupta and Richard Lough)<\/p>\n","protected":false},"excerpt":{"rendered":"

A landmark order from China for 300 Airbus jets signed during a state visit last week was bolstered by repeat announcements of dozens of existing deals and advance approval for deals that have yet to be struck, two people familiar with the matter said.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[798,797,89,799,2203,1397,868,1103],"tags":[49,167,47,464,118,3962,160,3963,728,41,446,1558,447,1846,2828,1767,207,1631,1681,589,3763,585,2829,412,995,100,689,639,3964,1288,779,1634,640,597,632,3961,1564,3764],"class_list":["post-4176","post","type-post","status-publish","format-standard","hentry","category-airbus-news","category-airline-news","category-aviation-news","category-boeing-news","category-finance-news","category-stock-news","category-transportation-news","category-travel-news","tag-a350","tag-aerospace","tag-airbus","tag-aircraft","tag-airlines","tag-announcement","tag-aviation","tag-award","tag-beijing","tag-boeing","tag-china","tag-chinese","tag-deal","tag-donald","tag-emmanuel","tag-europe","tag-france","tag-french","tag-industry","tag-jet","tag-jinping","tag-landmark","tag-macron","tag-news","tag-order","tag-paris","tag-planemaker","tag-president","tag-repeat","tag-reuters","tag-sichuan","tag-state","tag-trade","tag-trump","tag-us","tag-visit","tag-war","tag-xi"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4176"}],"version-history":[{"count":2,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4176\/revisions"}],"predecessor-version":[{"id":4179,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4176\/revisions\/4179"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}