China pays $5.6bn for Airbus to supply and assemble new jets

City A.M. Reporter
CHINA signed an agreement with Germany for 50 Airbus planes worth over $4bn yesterday, the first significant order since a dispute between Beijing and Europe over emissions trading.

The dispute between China and the EU has frozen earlier deals worth up to $14bn.

China’s ICBC Leasing and Airbus, whose parent company is Franco-German-led aerospace group EADS, signed the deal for 50 Airbus A320-family planes and another agreement about Airbus plane assembling in China.

Xinhua put the value of the deal at $3.5bn but at published list prices, it could be worth $4.6bn, according to a breakdown of models supplied by Airbus.

China regularly orders aircraft in large batches, but the deal fell short of European expectations of a 100-plane order, though Airbus insisted it was satisfied with the deal, which includes the first Chinese order for its fastest-selling model, a revamped version of its narrow-body plane known as A320neo.

Officials said Airbus and Chinese authorities had also reached a $1.6bn framework deal to extend an Airbus A320 assembly line at Tianjin near Beijing.