Airbus signed new cooperation agreements with the Chinese aviation industry during a state visit by the French to China. In the presence of Chinese President Xi Jinping and French President Emmanuel Macron, Airbus CEO Guillaume Faury signed an agreement with the Tianjin Free Trade Zone Investment Company Ltd. and Aviation Industry Corporation of China Ltd. to add a second line to its Tianjin facility for A320 Family final assembly. The agreement will contribute to Airbus’ goal of producing 75 aircraft per month across its global production network by 2026.
Since its inception in 2008, the Tianjin Final Assembly Line (FAL Asia) has assembled over 600 A320 Family aircraft. In March of 2023, the first A321neo aircraft rolled off the production line, ushering in a new era of increased production versatility within the A320 Family.
Moreover, Airbus signed a General Terms of Agreement (GTA) with China Aviation Supplies Holding Company (CAS) to purchase 160 Airbus commercial aircraft. The GTA includes orders for 150 A320 Family aircraft and 10 A350-900 widebody aircraft, reflecting the robust demand from Chinese carriers across all market segments.
China’s air traffic is expected to increase at an annual rate of 5.3% over the next two decades, considerably faster than the global average of 3.5%. This will demand 8,420 passengers and freighter aircraft between now and 2041, representing more than 20% of the worldwide demand for approximately 39,500 new planes over the next two decades.
Airbus and the China National Aviation Fuel Group (CNAF) also signed a Memorandum of Understanding (MoU) to intensify Sino-European cooperation on the production, competitive application, and formulation of common standards for Sustainable Aviation Fuels. (SAF). Airbus and CNAF signed a contract in September 2022 to support commercial and delivery flights in China operated by SAF. The two partners had facilitated 17 delivery flights and the first commercial flight by the end of March. This new cooperation agreement seeks to optimise the SAF supply chain by diversifying the sources and increasing SAF production to reach a 10% SAF usage rate by 2030.
Airbus entered the Chinese market in 1985 when China Eastern Airlines received its first A310 aircraft. By the end of the first quarter of 2023, over 2,100 Airbus aircraft will be in service in China, representing more than fifty per cent of the market.
