Chinese airlines are considering purchasing over 100 upgraded A330 models from Airbus. These negotiations highlight the growing contrast between Airbus and Boeing in China's critical aviation market amidst rising geopolitical tensions between China and the US. Such a large order for a single jet type across multiple carriers is notable, especially since it has been around two years since Airbus's last major transaction in China.
China has once again halted imports from US-based Boeing, only months after resuming them following a five-year hiatus. This pause is due to Chinese regulators reviewing a cockpit voice recorder design already approved in the US and Europe. In contrast, France-based Airbus benefits from its investments in China, including a factory that assembles the A320neo and another facility that installs interiors in the A330. Airbus has been one of the key beneficiaries of President Xi Jinping’s recent outreach to European leaders.
Airbus shares rose by up to 0.3% in early European trading, with the stock up 12% this year. This is in stark contrast to Boeing, whose stock has dropped 29%. An order from China would be particularly beneficial for Airbus, as it would boost the backlog for the A330neo, a slower-selling model. The A330neo, an updated version of the older A330 with new engines and wings, has struggled to secure new orders in a market flooded with discounted, readily available used versions.
To bolster its order book, Airbus may be more willing to offer better pricing and terms, especially as it plans to ramp up A330 production. Currently, Airbus has 165 unfilled orders for the A330neo, which debuted commercially in 2018. Despite the model's slow sales, Airbus has seen a surge in orders for the more advanced and longer-range A350, which is sold out until almost the end of the decade.