China Southern Airlines orders Airbus jets worth US$21b as Boeing deal remains rumour

Airbus secured an order for 137 A320neo jets from Chinese airlines, extending the European company’s edge in one of aviation’s most contested markets as US rival Boeing waits on a long-speculated deal with Beijing.

China Southern Airlines, one of China’s three major state-owned carriers, announced the deal on Wednesday. The airline, based in the southern city of Guangzhou, will purchase 102 aircraft, while its subsidiary Xiamen Airlines will acquire the remaining 35.

The orders carry a combined list price of US$21.37 billion, although both carriers received discounts, according to a statement from China Southern. The discounts – common for large orders in the industry – were fair and “in line with those obtained in previous Airbus orders”, China Southern said.

The deal was pending approval from the airline’s shareholders and relevant state authorities, the statement added. The aircraft would be delivered to China Southern between 2028 and 2032 and to Xiamen Airlines between 2029 and 2032.

With the deal, China Southern joins its state-owned peers in choosing Airbus aircraft. Shanghai-based China Eastern ordered 101 A320neo jets in March. And last year, Airbus secured orders for 148 A320s from several Chinese airlines and a state-owned aircraft leasing group, including Beijing-based Air China.