Airbus SAS, the French aerospace company and subsidiary of the Netherlands-based European Aeronautic Defence and Space Company NV (EPA:EAD), is nearing a deal to sell China more than 100 aircraft, according to a published report.
Airbus SAS, the French aerospace company and subsidiary of the Netherlands-based European Aeronautic Defence and Space Company N.V., is nearing a deal with the Chinese government to sell more than 100 aircrafts.
If successful, the deal will become the Toulouse-based manufacturer's largest agreement so far this year and help Airbus regain its competitive footing against chief industry rival Boeing Co. (NYSE: BA).
By the end of last month, Airbus had 301 passenger jet orders, less than half what its U.S. competitor had in the same time period, according to Bloomberg News. Much of Boeing's success this year stems from the popularity of its new 737 MAX single-aisle aircraft.
Earlier this summer, Boeing secured its position ahead of Airbus with a multibillion-dollar commitment from Air Lease Corp. (NYSE: AL). It extended this lead into the beginning of August with an auspicious deal with Singapore Airlines Ltd. (Singapore: C6L).
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But more recently, the sales gap between the two aerospace giants has been narrowing as Boeing began to lose orders of its own and China expressed interest in breaking the Airbus-Boeing market duopoly by building up its own domestic aerospace companies.
Sources speaking to Bloomberg News reported that Airbus CEO Fabrice Bregier is planning to travel to China this week, joining EADS CEO Tom Enders for negotiations with the Civil Aviation Administration of China, which approves most airplane purchases in China. Enders himself is traveling with German Chancellor Angela Merkel, who is currently on a state visit to China.