China's huge Airbus order padded by old or incomplete deals: Sources

A landmark order from China for 300 Airbus jets signed during a state visit last week was bolstered by repeat announcements of dozens of existing deals and advance approval for deals that have yet to be struck, two people familiar with the matter said. Echoing an umbrella order for 300 Boeing jets awarded during a visit to Beijing by US President Donald Trump in 2017, the headline figure for the new “framework order” for European jets was partly driven by political considerations, the people said. The Airbus deal would have been worth some $35b at list prices but the amount of new business is lower, they added. Duplicate announcements included a deal for 10 A350 aircraft to an unnamed buyer, which represents a repeat announcement of an order for 10 jets by Sichuan Airlines at an air show last year. The disclosure takes some of the shine off an announcement widely regarded as the economic highlight of a trip to Europe by Chinese President Xi Jinping. Nonetheless the deal marked a return to the aircraft market by China’s state buying agency after a pause of over a year during global trade tensions. The overall figure of 300 was introduced late in the process and after Xi’s visit was underway, although plane orders typically take months to negotiate, one of the people said. Airbus declined to comment on detailed orders but left open the possibility that the large total contained gaps.<br/>