Airbus has sold 25 Airbus A330neo jets to China Eastern Airlines. The sale is worth approximately $9.35 billion but will reportedly cost significantly less than that once a discount is agreed. The new jets will expand China Eastern’s capacity for intercontinental flights, and secure Airbus’ influence in the Chinese market.
Why Has China Eastern Bought New Jets?
China Eastern has reported that the new jets will be gradually delivered by Airbus between 2029 and 2033.
The new A330neo planes will join China Eastern’s existing fleet of 33 Airbus A330-200s and 33 Airbus A330-300s, 30 and 24 of which are currently in service respectively.
This purchase follows an even larger order of 101 Airbus A320neo planes that China Eastern bought from Airbus in March, for a reported $15.8 billion.
China Eastern previously had 117 Airbus A320-200 jets, and 120 of the newer A320neo planes in service.
The “neo” planes are reportedly more fuel efficient than their predecessors, allowing for cheaper travel on China Eastern’s routes to Europe and the U.S.
The company has stated that the new planes will primarily be used for intercontinental flights to and from Shanghai Pudong International Airport (PVG), one of China Eastern’s four hubs.
What Does this Mean for Airbus?
China Eastern is considered on of China’s “big three” airlines along with China Southern Airlines, and the nation’s flag carrier, Air China.
A majority of all three of these airlines’ fleets currently consist of Airbus jets, with this forward-looking deal with China Eastern helping to secure Airbus’ influence within the world’s second largest aviation market.
In its Global Market Forecast, published last year, Airbus predicted that Central Asia would be a key driver of growth in the aviation industry over the next 20 years.
The forecast predicted that traffic flow between China and other emerging Asian nations would grow by an average of 8.5% per year until 2044. If this is correct, then flights between China and nations such as India, Indonesia and Malaysia would be over five times as popular in 2044 than they are today.
Do you think the Chinese aviation industry will continue to grow? Have you ever flown with China Eastern Airlines? Let us know in the comments.
