China has a huge market. So, it isn’t surprising that world-famous companies are willing to expand their operations in the country.
Airbus is interested in the local market. Recently, the company announced plans for a second final assembly line in China. Airbus is working hard in order to strengthen its position in China.
The above-mentioned announcement came as part of a state visit by French President Emmanuel Macron to China. It is important to note that Airbus already operates a final-assembly facility in China. The company opened its facility in Tianjin in 2008.
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At the moment, the company operates four assembly sites around the world. Aviation is an integral part of the world. Importantly, Airbus forecasts that China’s air traffic will grow by 5.3% annually over the next 20 years.
What about the rest of the world? No other country is expected to rival China. So, it isn’t surprising that Airbus decided to open a second final assembly line in the country.
Boeing also would like to sell its planes in China. However, the company is unable to sell its planes due to the current situation. As a reminder, trade relations between the United States and China are far from ideal.
As part of the deal, Airbus will deliver 160 aircraft to China. The company has already delivered more than 2,000 planes.
Boeing and China
Boeing is struggling to cope with problems. The company hasn’t reported an order for a commercial passenger plane from a Chinese airline in several years.
Chinese aircraft leasing companies continue to buy planes from Boeing. However, the planes could be destined for buyers outside of China. Chinese companies could also buy cargo planes. As a reminder, Boeing remains a market leader when it comes to cargo planes.
And deliveries to customers based in China have plunged. So far this year, Boeing has delivered only one 777 in a cargo configuration to China Air Cargo. In 2022, Boeing delivered only 12 jets.
In 2017, Boeing delivered 161 jets to China. The following year, the company delivered even more jets to customers in China.
China used to buy jets from Boeing. However, the situation changed several years ago. The Trade War between the countries had a negative impact on Boeing. However, we shouldn’t forget about other problems.
Problems with the Boeing 737 Max as well as the Covid-19 pandemic seriously affected the aviation industry. As a result, deliveries to China declined to 45 in 2019. Unfortunately, the company has delivered even fewer jets since then.
The company’s best-selling model, the 737 Max, is struggling to compete with the A320 family in China. Problems with its best-selling model had a serious impact on Boeing’s position in China.
Boeing encountered problems not only in China but outside of China as well. However, the situation isn’t as severe as in the case of China. It would take to regain the trust of customers.