China’s aviation industry will buy 300 Airbus planes, dealing a significant blow to Boeing, which is still recovering from the fallout of the two recent crashes including its 737 Max 8 model.
China Aviation Supplies Holding Company (CAS) made the announcement that it will purchase the aircraft on Monday, during Chinese President Xi Jinping’s visit with French President Emmanuel Macron.
“We are honored to support the growth of China’s civil aviation with our leading aircraft families – single aisle and widebodies,” Guillaume Faury, President of Airbus Commercial Aircraft and Airbus’ future CEO, said in a statement. “Our expanding footprint in China demonstrate our lasting confidence in the Chinese market and our long-term commitment to China and our partners.”
The Chinese company will buy 290 A320 and 10 A350 XWB aircraft.
The Chinese opted for Airbus after two Boeing aircraft crashed within several months, forcing airlines to ground all 737 Max 8 planes and causing widespread mistrust in the company. The company’s CEO said Tuesday it was working toward regaining the public’s trust.
“With a shared value of safety, be assured that we are bringing all of the resources of The Boeing Company to bear, working together tirelessly to understand what happened and do everything possible to ensure it doesn’t happen again,” Boeing Chairman and CEO Dennis Muilenburg said in a statement on Tuesday.
In the next 20 years, China will make up for about 17 percent of the total global demand for passenger and freight planes, Airbus’ China Market Forecast for 2018 to 2037 says. Last year, Boeing presented similar forecasts which said that the country will need almost 7,700 new aircraft.
Boeing offered a significant leverage to President Donald Trump in his trade negotiations with China, but the March 10 crash erased it and talks remain unresolved. On the other hand, China has reached several deals with the European Union in the past week.