(ChinaKnowledge, Oct 26, 2006) Airbus SAS, which is competing with The Boeing Co. for the position of the world¡¯s number one commercial aircraft maker, is expected to announce today a US$5 billion deal to sell up to 70 Airbus jets to China.

The announcement is expected to coincide with the visit of Jacques Chirac, the French president, to Beijing yesterday, media reports said.

In December last year, China ordered 150 single-aisle Airbus aircraft worth US$10 billion when Chinese Prime Minister Wen Jiabao visited the Airbus headquarters in Toulouse, France, and Airbus is expecting it to be no different this year with a landmark order during Chirac¡¯s visit.

China¡¯s commercial aircraft market is expected to be worth US$280 billion over the next 20 years and Airbus and Boeing are fighting for a larger slice of it.

Airbus, which is the underdog in the race holding a smaller share of the Chinese market, is hoping to improve its chances with the construction of an assembly plant for its A320 family of single-aisle 100 to 185-seater jets in Tianjin, in the east of China.

The issue of the construction of the Airbus plant in Tianjin and the order of the 70 Airbus jets are tied together, officials say, and there have been difficulties over the issue of the plant in Tianjin after cash flow worries at the aircraft maker led to talk of factory closures in Europe.

Airbus has been struggling to get over a delay in deliveries that analysts expect to have a negative impact on its next financial statement.
source:ChinaKnowledge