Last month, China Eastern ordered 25 A330neo jets from Airbus, which come with a catalog price of US$9.35 billion. The airline, which operates commercial routes for the C919, China’s domestic airliner, had placed another Airbus order just three months ago.
Why this is the main airline of China transfer billions for a European company the Chinese government is trying to take over?
As a widebody aircraft, the A330neo competes in a segment that Commercial Airlines of China (Comac) it’s currently out of stock, so this isn’t an easy hedge against delays. These orders represent something more strategic: capital paid now for operational knowledge, trained workers and supply chain integration that China’s aerospace industry will take over time.
This fits the open design. Earlier this year, Civil Aviation Authority of China (CAAC) It reportedly did not issue approvals for around 20 completed Airbus aircraft, a period which Airbus CEO Guillaume Faury described as a “management delay”. The suspension contributed to Airbus’ lowest first-quarter deliveries since 2009 and left about €5 billion (US$5.7 billion) in completed aircraft undelivered. Analysts noted the obvious: the Airbus relationship has become an impetus for Beijing’s pressure on the European Union.
Generosity one month, coercion the next. That is not inconsistent. It is a force, used through different instruments towards the same long-term goal.
The relationship that makes this possible was built over two decades. It increased last October when Airbus opened its the second The A320 family assembly line in Tianjin, its 10th final assembly line worldwide. This came just nine days after a similar ceremony in Mobile, Alabama, a sequence seen as intended to moderate trade tensions between the US and China. Since 2008, the Airbus operation in Tianjin has assembled more than 780 A320 aircraft. Last year, Airbus held 55 percent of China’s commercial aircraft market, with most of its Tianjin production going to Chinese airlines.
