Bloomberg: China poised to purchase 500 Airbus planes as Boeing loses ground due to US tariffs

China is considering placing an order for up to 500 aircraft from European planemaker Airbus SE as early as next month, sources familiar with the matter told Bloomberg. 

Negotiations are ongoing with Chinese airlines regarding the size and composition of the potential deal, which could range between 200 and 500 planes and include both narrowbody and widebody models. 

This prospective deal would mark one of the largest aircraft orders ever and surpass China’s previous biggest Airbus purchase of about 300 single-aisle jets made in 2022, valued at approximately $37 billion. The order would also send a strong geopolitical signal as France and Germany — major shareholders in Airbus — back the European company, while US-China trade relations remain strained.

The trade tensions between the world’s two largest economies have significantly impacted the commercial aviation market. US planemaker Boeing, traditionally strong in China, has seen its position eroded due to multiple factors, including safety crises with the 737 Max model, which China was the first country to ground in 2019 following two fatal crashes.

In April, Chinese authorities advised local airlines to suspend deliveries of Boeing aircraft, further strengthening Airbus’s foothold. Boeing also faced a quality scare in early 2024 when a door plug malfunctioned mid-flight. The US manufacturer has not secured a major Chinese order since at least 2017.

A resolution of trade differences between China and the US could open the door for Boeing to regain some ground, as evidenced by Boeing’s inclusion in the recent US-UK trade deal. However, for now, Airbus appears poised to benefit from the shifting market dynamics.

If finalised, the Chinese order could rival Air India’s 2023 deal for 470 aircraft from Airbus and Boeing combined, and match IndiGo’s record-breaking 2023 order for 500 narrowbody Airbus planes.

Airbus SE is a European multinational aerospace corporation headquartered in Leiden, Netherlands, with operational headquarters in Toulouse, France. Founded in 1970 as a consortium of aerospace companies from France, Germany, and Spain, Airbus has grown into one of the world’s leading aircraft manufacturers, competing directly with the US-based Boeing Company. The company produces a wide range of commercial aircraft, including the popular single-aisle A320 family and the widebody A350 XWB. Airbus SE is partly owned by the governments of France and Germany, reflecting its strategic importance to European industry and defence.

Airbus has historically enjoyed strong sales growth in Asia, particularly in China, which has been one of the fastest-growing aviation markets globally.

By Khagan Isayev