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Airbus buy to soak up demand
( 2002-04-17 11:37 ) (1 )

China will purchase 20 passenger aircraft from the European consortium Airbus Industrie to expand its fleet and meet increasing traffic demand.

Ye Yigan, chairman of the China Eastern Airlines Corp Ltd, and John Leahy, chief commercial officer of Airbus, signed a contract on Tuesday for the US$1.1 billion purchase in Shanghai, where China Eastern Airlines is based.

Airbus, which has aircraft manufacturing facilities in France, Germany, Spain, Britain, Japan and China, to compete with the American Boeing Co, will deliver the 150-seat A320 jets beginning next year. The delivery is scheduled to be completed in 2005.

The orders China signed for the A320 jets, which are Airbus' fastest selling products, are believed to be helpful in strengthening the European aircraft manufacturer's position in challenging Boeing in the Chinese market.

By the end of March, 168 Airbus passenger jets had been in service in the Chinese mainland, Hong Kong and Macao. Of them, 96 are A320 family aircraft. The fleet is to expand, as Airbus said it had orders for more from Chinese clients.

According to previous agreements, Airbus will deliver China Eastern Airlines two 124-seat A319 jets this year and five 400-seat A340-600 jets in 2003 and 2004.

Leahy described the purchase as "a further vote of confidence" from the Chinese firm for Airbus products.