Airbus Expects ‘Sizable’ Chinese Order

Airbus expects China’s government to approve a “sizable” aircraft order by the end of this year, as one of the world’s fastest-growing aviation markets buys jets to meet future capacity needs.

Airbus’ order will be dominated by single-aisle planes used mostly for domestic Chinese routes, said Guy McLeod, chief executive of Airbus China.

“We are working closely with airlines and central authorities in China and would anticipate concluding a sizable single-aisle order before the end of the year,” McLeod said.

The Asian Wall Street Journal, citing Airbus’ Vice President for sales John Leahy, said the Toulouse, France-based company expects an order from China for as many as 50 aircraft worth $2.7 billion.

Airbus and rival Boeing Co. expect China to become the world’s biggest aircraft market after the U.S., buying about 1,600 airliners over the next two decades. Boeing forecasts the total value of those orders will amount to $144 billion. The two aircraft manufacturers need orders from China this year to meet their annual sales goals.

Chinese officials recently indicated that the country may soon buy jets from rival Boeing, as China-U.S. ties improved in the wake of Secretary of State Colin L. Powell’s visit to the Chinese capital late last month. Boeing Chief Executive Phil Condit has said he expects an order of as many as 40 aircraft this year.

China also is considering purchasing Russian-made Tupolev-204 aircraft in addition to the European- and U.S.-built planes, according to Xu Dengyin, director of Western aircraft sales at China Aviation Supplies Import & Export Corp.

The nation is looking at “Russian-made planes because they are cheap in price,” Xu said.

China’s airlines are awaiting the end of a moratorium on new aircraft orders imposed by the central government three years ago to curb excess expansion in the aviation industry. The carriers are eager to buy more single-aisle jetliners to serve domestic routes.

Improved ties between Beijing and Washington could prompt China to accelerate orders of Boeing jets, Song Chaoyi, who supervises aircraft purchases at China’s top planning agency, said earlier this month.