China Southern Airlines Seals Deal with Airbus for 137 A320neo Jets
China Southern Airlines has formalized an order for 137 Airbus A320neo family aircraft, a transaction valued at approximately $21.37 billion at current list prices. This strategic move solidifies the European manufacturer’s competitive edge in the Chinese market, as negotiations with its American rival, Boeing, remain in a state of uncertainty.
Order Distribution and Financial Terms
The agreement announced this Wednesday outlines a specific distribution aimed at strengthening both the mainline carrier and its subsidiary:
- China Southern Airlines: Will acquire 102 aircraft.
- Xiamen Airlines: Will incorporate the remaining 35 units.
Although the total list value reaches $21.37 billion, China Southern confirmed that both carriers secured significant discounts. According to a statement from the Guangzhou-based airline, these price concessions are standard for high-volume orders and are consistent with previous contracts signed with Airbus.
The delivery schedule dictates that the aircraft will join China Southern’s fleet between 2028 and 2032, while Xiamen Airlines is slated to begin receiving its units in 2029, with deliveries also extending through 2032.
Boeing: A Deal Still Up in the Air
While Airbus cements its footprint in the region, the long-anticipated contract between Boeing and Beijing has yet to materialize. The situation has been further complicated by geopolitical factors, including the postponement of President Donald Trump’s visit to China.
Despite the absence of an official announcement, sources close to the negotiations indicated that a potential aircraft order was discussed during recent trade talks in Paris. Reports suggest that the eventual deal could involve as many as 500 aircraft.
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