Air China Secures 60 Airbus A320neo Jets in Major Fleet Expansion Deal
Key Points
- 1Air China ordered 60 Airbus A320neo family jets, valued at $9.5 billion at list price.
- 2The purchase is part of a 2022 China Aviation Supplies Holding Company (CASC) framework deal for 132 A320-family aircraft.
- 3Deliveries for the new single-aisle jetliners are scheduled over five years, from 2028 through 2032.
- 4The order reinforces Airbus's dominance in the China commercial aviation market amid prolonged U.S.-China trade tensions.
China's flagship carrier, Air China, has finalized a significant aircraft order.
The airline and a subsidiary signed a pact with Airbus to acquire 60 A320neo family jets. This major deal is valued at approximately $9.5 billion at list prices. The new single-aisle jetliners will be delivered in batches. Deliveries are scheduled to begin in 2028 and run through 2032. Air China disclosed the purchase in a filing to the Shanghai Stock Exchange. The airline stated the order supports fleet modernization and capacity growth. The A320neo family is known for its reduced fuel burn and emissions.
Context and Background
This 60 A320neo jet order is not an isolated event. It is part of a late-December surge in Chinese Airbus orders. Other carriers like Spring Airlines and Juneyao Airlines also announced plans to buy Airbus jets. Spring Airlines confirmed an order for 30 A320neo aircraft. Juneyao Airlines disclosed plans for 25 A320-family jets.
The Air China purchase stems from a larger agreement. It falls under a 2022 framework deal with China Aviation Supplies Holding Company (CASC) and Airbus. That original framework covered 132 A320-family aircraft. It also included eight A350 widebodies. The total value of the 2022 deal was about $17 billion. Individual contracts for the CASC Airbus framework deal take time to negotiate.
Geopolitical Impact on Aircraft Orders
This new order highlights the current competitive landscape. Airbus maintains a strong edge in the China commercial aviation market. Prolonged political tension between Beijing and Washington has hampered Boeing's ability to secure new orders. Reports from April 2025 indicated China had ordered a halt to all Boeing jet deliveries. This action was part of a broader trade dispute. The resulting uncertainty has shifted the advantage to the European planemaker.
Market Outlook and Fleet Strategy
The aviation fleet expansion is crucial for Air China. The new aircraft will expand the carrier's capacity by about 6.5%. They will be used to replace older narrowbody aircraft. This move aligns with the broader growth in the region. The Asia-Pacific aviation market is growing quickly. China's air traffic is forecast to grow at 5.3% annually over the next two decades. This rate is significantly faster than the world average of 3.6%.
According to the International Air Transport Association (IATA), the global airline industry has seen a strong rebound. However, long delivery lead times remain a challenge. A new order placed now may not be fulfilled for many years. Air China's forward-looking purchase secures its capacity needs well into the next decade. This is vital for China's flagship carrier to maintain its market position. For more commercial aviation news and analysis, visit flying.flights.
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