>>> Airbus clinches largest single order from China
by Derek Yeo


AIRBUS AND CHINA Aviation Supplies Importer & Exporter Group (CASGC) yesterday inked an historic sales agreement. It marked the apex of commercial ties between the European aircraft manufacturer and China's aviation industry over the last two decades.

Under a General Terms Agreement, Airbus will supply 150 A319s, A320s and A321s to Air China, the national carrier, and five other Chinese regional airlines. It is the largest single order from China for Airbus.

Airbus and CASGC officials signed the historic deal - worth US$9.7 billion at list prices - in the presence of French Prime Minister Dominique de Villepin and visiting Chinese Premier Wen Jiabao.

China's Airbus order surpasses her purchase of 70 Boeing jets worth about US$4 billion last month during President George W Bush's trip to Beijing. It comes at a time when Chinese-European ties - and especially French-Sino relations - are at their best.

Until now, Boeing's and Airbus' shares of the Chinese market for new aircraft have been about 60% and 33% respectively.

Mr Wen visited the Toulouse plant where Airbus builds its megajumbo, the A380. Visibly impressed, he asked plant officials many questions.

While in Toulouse, Mr Wen also officiated at the signing of a joint-venture between Airbus and China's National Development and Reform Commission. This pact could pave the way for Airbus to make A320 jets in China.